Novartis (SWX: NOVN) reported earnings on Jan. 23. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Novartis beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins dropped, net margins expanded.
Novartis logged revenue of $14.83 billion. The 13 analysts polled by S&P Capital IQ expected revenue of $14.49 billion on the same basis. GAAP reported sales were 0.5% higher than the prior-year quarter's $15.00 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.27. The nine earnings estimates compiled by S&P Capital IQ predicted $1.31 per share. GAAP EPS of $0.83 for Q4 were 69% higher than the prior-year quarter's $0.49 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 66.2%, 240 basis points worse than the prior-year quarter. Operating margin was 16.5%, 400 basis points worse than the prior-year quarter. Net margin was 13.6%, 580 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $13.50 billion. On the bottom line, the average EPS estimate is $1.40.
Next year's average estimate for revenue is $57.02 billion. The average EPS estimate is $5.27.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Novartis is outperform, with an average price target of $65.91.
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