Novartis Q1 Earnings Take A Hit Amid COVID-19 Impact

Novartis AG (NYSE: NVS) Q1 core net income dropped 4% Y/Y, as COVID-19 related lockdowns and disruptions around the globe hit demand.
Novartis missed earnings and sales expectations as the pandemic hit demand for drugs for breast cancer, skin and eye conditions.
Core EPS of $1.52 missed the consensus of $1.59. Sales were 1% higher at $12.4 billion but missed the analyst estimate of $12.51 billion.
Core net income slipped to $3.4 billion from $3.5 billion a year ago. Net income fell 5% to $2.06 billion.
Operating income fell 14% on a constant currency basis, to $2.4 billion.
The company has taken a sales hit for drugs in dermatology, eye diseases, and breast cancer treatment areas as patients were reluctant to visit the doctors during the pandemic.
Cough medicine sales at Novartis’s Sandoz unit were also hit by a “historically weak” cold season because of social-distancing measures.
The Sandoz unit, where sales fell 9% to $2.3 billion, now expects revenue for the full year to decline in the low-to mid-single-digit percentages.
Novartis confirmed its 2021 outlook, which foresees net sales growing at a low-to mid-single-digit percentage rate. Its core operating income is expected to grow at a mid-single-digit percentage rate ahead of sales.
Price Action: NVS shares are down 0.51% at $87.36 in premarket on the last check Tuesday.