Robert Way
Swiss pharmaceutical giant Novartis (NYSE:NVS) is scheduled to announce Q3 earnings results on Tuesday, October 25th, before market open.
The consensus EPS Estimate is $1.62 (-5.3% Y/Y) and the consensus Revenue Estimate is $12.75B (-2.1% Y/Y).
Over the last 2 years, NVS has beaten EPS estimates 50% of the time and has beaten revenue estimates 38% of the time.
Over the last 3 months, EPS estimates have seen 1 upward revision and 2 downward. Revenue estimates have seen 0 upward revisions and 4 downward.
The downward revisions to revenue likely reflect the expected impact of a strengthening U.S. dollar.
Investors will be keeping a close eye out for any comments or updates from Novartis (NVS) on its intended spin-off of generic drugs business Sandoz.
“The Sandoz division revived in the previous quarter after a lull, benefitting from a return to normal business dynamics, with growth across all business franchises. The trend is likely to have continued in the third quarter,” Zacks had said last week. Its estimate for Q3 sales from the unit is $2.3B.
Sandoz, which is the second largest maker of Adderall in the U.S., has also been under the radar for supply issues that have contributed to an overall shortage of the popular ADHD drug.
Another major lingering concern for the Swiss drugmaker is the potential launch of generics of its blockbuster multiple sclerosis drug Gilenya. The U.S. Supreme Court earlier in Oct. lifted a stay that had prevented generic versions of Gilenya from hitting the market.
Novartis (NVS) in July reported Q2 results that beat analysts’ expectations, helped by strong sales of its heart failure drug Entresto and its psoriasis drug Cosentyx. Zacks estimates Q3 sales of $1.1B and $1.3B, respectively, for the two drugs.
NVS also reconfirmed its FY 2022 guidance in July. The company had later in Sept. said it would be focused on the U.S. market, despite recent laws to control drug prices, and that it aimed to become a top five player in the country by 2027.
Among other developments in Q3, Novartis (NVS) will be reportedly cutting 400 jobs at its operations in Ireland, representing about 25% of its workforce in that country.
In Sept., NVS said the Swiss Competition Commission and the European Commission had started an investigation against the company over patent use linked to dermatology treatments.
Up to Friday’s close, Novartis (NVS) stock had fallen 11.9% YTD.
The stock has a Wall Street average rating and SA Authors rating of buy, while Seeking Alpha’s Quant system rates it at hold.
