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Novartis Q1 Earnings Take A Hit Amid COVID-19 Impact

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Novartis Q1 Earnings Take A Hit Amid COVID-19 Impact
  • Novartis AG (NYSE: NVSQ1 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.
 

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Posted-In: BriefsBiotech Earnings News Guidance Health Care General

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