Stock Monitor: Sanofi Post Earnings Reporting
LONDON, UK / ACCESSWIRE / May 03, 2018 / Active-Investors.com has just released a free earnings report on Novartis AG (NYSE: NVS). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=NVS. The Company reported its first quarter fiscal 2018 operating and financial results on April 19, 2018. The Basel-based drug maker topped revenue estimates. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Novartis AG most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
For the first quarter of the fiscal year 2018, Novartis recorded net sales of $12.7 billion, up 10% compared to $11.5 billion in Q1 2017, as a volume growth of 9% was partly offset by the negative impacts of pricing (-3%) and generic competition (-2%). The Company's revenue numbers topped analysts' estimates of $12.6 billion.
During Q1 2018, Novartis' operating income surged 27% to $2.4 billion compared to $1.9 billion in Q1 2017, primarily driven by higher sales and lower net impairment charges, partly offset by higher growth investments. The Company's core operating income of $3.3 billion was 11% higher on a y-o-y basis.
Novartis reported a net income of $2.0 billion, or $0.87 per share, compared to $1.7 billion, or $0.70 per share, in Q1 2017, driven by the strong operating income and lower number of shares outstanding, partly offset by the lower income from associated companies.
For Q1 2018, Novartis' core earnings per share (EPS) advanced 13% to $1.28 compared to $1.13 in Q1 2017, driven by a growth in core net income and the lower number of shares outstanding. The Company's EPS lagged Wall Street's estimates of $1.29.
During Q1 2018, Novartis' Innovative Medicines Group generated net sales of $8.4 billion, up 12% compared to $7.5 billion in Q1 2017. The Company's volume contributed 11% to the segment's sales growth in the reported quarter, the highest quarterly volume growth in the last two years. Generic competition had a negative impact of 3%, while pricing had a negative impact of 2%. For Q1 2018, the segment's operating income surged 27% to $2.1 billion on a y-o-y basis, mainly driven by higher sales and lower net impairment charges, but partly offset by generic erosion and growth investments, and the China field force expansion.
During Q1 2018, Novartis' Sandoz segment's net sales grew 4% to $2.5 billion compared to $2.4 billion in Q1 2017, as a 6% of price erosion, mainly in the US, was partly offset by a volume growth of 2%. The segment's operating income advanced 19% to $409 million on a y-o-y basis, primarily driven by the continued gross margin improvement and gains from the divestment of non-strategic assets.
During Q1 2018, Novartis' Alcon segment's net sales totaled $1.8 billion, up 12% compared to $1.6 billion in Q1 2017, with growth in all product categories. The segment's stock-in-trade movements accounted for approximately 1% of growth. Alcon's strong results reflected the benefits from improved operations, customer relationships, and product launches. The segment had an operating income of $90 million in the reported quarter compared to a loss of $2 million in the prior year's same quarter, largely driven by higher sales.
As of March 31, 2018, Novartis' liquidity amounted to $6.4 billion compared to $9.5 billion at December 31, 2017, and the total of the non-current and current financial debt, including derivatives, amounted to $34.1 billion at March 31, 2018, compared to $28.5 billion at December 31, 2017.
At March 31, 2018, Novartis' net debt increased to $27.7 billion compared to $19.0 billion at December 31, 2017. The Company's debt to equity ratio increased to 0.48:1 at March 31, 2018, compared to 0.38:1 at December 31, 2017.
During Q1 2018, Novartis' cash flows from operating activities amounted to $2.5 billion compared to $2.0 billion in Q1 2017. The increase of $0.5 billion was mainly driven by a higher net income adjusted for non-cash items, as well as favorable working capital changes due to the receipt of a sales milestone recognized in Q4 2017, related to the Vaccines divestment to GSK.
For Q1 2018, Novartis' free cash flow amounted to $1.9 billion compared to $1.7 billion in the prior year's corresponding quarter, mainly driven by higher cash flows from operating activities, and partly offset by higher investments in intangible assets.
Stock Performance Snapshot
May 02, 2018 - At Wednesday's closing bell, Novartis' stock slightly dropped 0.64%, ending the trading session at $75.79.
Volume traded for the day: 1.61 million shares.
After yesterday's close, Novartis' market cap was at $196.44 billion.
Price to Earnings (P/E) ratio was at 22.35.
The stock has a dividend yield of 3.93%.
The stock is part of the Healthcare sector, categorized under the Drug Manufacturers - Major industry.
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