Novartis Q4 Profit Surges, Core EPS Miss View; Sees Growth In FY24; Updates Mid-term Outlook

(RTTNews) - Swiss drug major Novartis AG (NVS) reported Wednesday that its fourth-quarter net income was $8.48 billion, up from last year's $1.47 billion. Earnings per share were $4.14, significantly higher than $0.69 a year ago.

The latest results included net income from discontinued operations of $5.84 billion, driven by the IFRS Accounting Standards non-cash, non-taxable, net gain on distribution of Sandoz Group AG to Novartis AG shareholders of $5.9 billion, compared to income of $151 million in prior year.

On a continuing operations basis, net income was $2.64 billion, up 101 percent from last year's $1.32 billion. Earnings per share grew 108 percent to $1.29 from $0.62 a year ago.

Core net income was $3.13 billion, compared to last year's $3.25 billion. Core earnings per share were $1.53, compared to $1.52 a year ago. The prior year's core net income from continuing operations was $2.96 billion or $1.39 per share.

Analysts on average expected the company to report earnings of $1.68 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Net sales grew 8 percent to $11.42 billion from last year's $10.58 billion. Sales increased 10 percent at constant currency rates. The Street was looking for sales of $11.75 billion for the quarter.

Further, the Novartis Board of Directors proposed a dividend payment of 3.30 Swiss francs per share for 2023, up 3.1 percent from the prior year.

Looking ahead for fiscal 2024, the company projects net sales to grow mid single digit and core operating income to grow high single digit.

Further, the company updated mid-term guidance, with net sales expecting to grow 5 percent cc CAGR 2023-2028 with core operating income margin expanding to around 40 percent by 2027.

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