Novartis' 3rd-qtr beats expectations; Alcon decision on backburner

Swiss pharma giant Novartis (NOVN: VX) this morning reported that sales for the first quarter of 2017 rose 2% to $12.4 billion, beating the Reuters poll average of $12.2 billion.

Core net income rose 4% to $3.02 billion, compared to the average analyst estimate of $2.93 billion in a Reuters poll. Nevertheless, Novartis shares were down 2.06% at 83.40 Swiss francs by late-morning, which analysts suggest may reflect investors’ disappointment that a spin-off of the Alcon eye-care division will not come as early as next year.

Operating income was $2.4 billion (+4%, +6% cc) mainly driven by growth drivers, productivity and a gain from a Swiss pension plan amendment, which were partly offset by generic erosion. Core adjustments amounted to $1.0 billion (2016: $1.1 billion). Earnings per share were $0.89 (+10%, +12% cc), driven by growth in net income and the benefit from the share buyback program.