The 10-second takeaway
For the quarter ended March 31 (Q1), Novartis met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share contracted significantly.
Margins shrank across the board.
Novartis logged revenue of $13.74 billion. The 13 analysts polled by S&P Capital IQ foresaw sales of $13.91 billion on the same basis. GAAP reported sales were 2.2% lower than the prior-year quarter's $14.22 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.27. The 10 earnings estimates compiled by S&P Capital IQ predicted $1.29 per share on the same basis. GAAP EPS of $0.95 for Q1 were 20% lower than the prior-year quarter's $1.19 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 67.8%, 90 basis points worse than the prior-year quarter. Operating margin was 20.2%, 380 basis points worse than the prior-year quarter. Net margin was 16.6%, 290 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $14.53 billion. On the bottom line, the average EPS estimate is $1.37.
Next year's average estimate for revenue is $58.60 billion. The average EPS estimate is $5.44.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Novartis is outperform, with an average price target of $64.65.
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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.