Novartis 2nd-qtr beats expectations; guidance raised

Swiss pharma giant Novartis (NOVN: VX) today posted second-quarter 2019 financials today, showing that sales increased 8% to $11.76 billion, beating the $11.54 billion forecast by 10 analysts in a Refinitiv poll.

Second-quarter core operating income rose 20% in constant exchange rates to $3.65 billion, with core earnings per share of $1.34, compared with the average estimate of analysts polled by Zacks Investment Research was for Novartis earnings of $1.20 per share.

The company now expects 2019 core operating income to grow at low-double-digit to mid-teens percentages, faster than the previous high-single-digit percentage rate target. Sales expectations were also raised for both the Novartis and Sandoz businesses, with growth now seen in the mid to high-single digit range. Novartis highlighted performance at Sandoz, where it said international business offset price declines in the USA.