Novartis (SWX: NOVN) reported earnings on Jan. 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Novartis met expectations on revenue and missed on earnings per share.
Compared to the prior-year quarter, revenue improved, and earnings per share dropped significantly.
Margins dropped across the board.
Novartis reported revenue of $14.78 billion. The 12 analysts polled by S&P Capital IQ wanted to see a top line of $14.76 billion. Sales were 3.7% higher than the prior-year quarter's $14.20 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.23. The six earnings estimates compiled by S&P Capital IQ predicted $1.26 per share on the same basis. GAAP EPS of $0.48 for Q4 were 49% lower than the prior-year quarter's $0.94 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 65.9%, 550 basis points worse than the prior-year quarter. Operating margin was 8.8%, 1,080 basis points worse than the prior-year quarter. Net margin was 7.8%, 720 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $14.36 billion. On the bottom line, the average EPS estimate is $1.37.
Next year's average estimate for revenue is $59.54 billion. The average EPS estimate is $5.63.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Novartis is outperform, with an average price target of $67.20.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.