Novartis delivers another strong quarter and lifts full-year guidance

Swiss pharma giant Novartis (NOVN: VX) this morning posted financial results for the third quarter of 2019, showing that sales were 12.2 billion (+10%, +13% constant exchange), driven by volume growth of 16 percentage points (constant currency) and well beating the $11.7 billion average in a Refinitiv poll. Strong volume growth was partly offset by the negative impacts of pricing (-2 percentage points cc) and generic competition (-1 percentage point cc).

Operating income was $2.4 billion (+5%, +9% cc) mainly driven by higher sales and productivity, partly offset by growth investments, lower divestments and higher amortization.

Net income was $2.0 billion (+8%, +12% cc) driven by higher operating income and higher income from associated companies. Earnings per share (EPS) were $0.90 (+11%, +14% cc), growing faster than net income driven by lower weighted average number of shares outstanding. An analyst consensus forecast provided by FactSet estimated quarterly net income of $2.47 billion and sales of $11.71 billion.