From RTT News:

Shares of Novartis AG fell over 4% in morning trading on the Swiss exchange and pre-market on NYSE due to lower-than-expected core earnings in the fourth quarter. Net profit surged due to income from discontinued Sandoz Group AG spin-off and higher sales. The company projects sales and core operating income growth for 2024 and updated mid-term guidance.

Novartis CEO Vas Narasimhan expressed confidence in the company’s operational performance, delivering strong top and bottom-line growth. The company had ten positive Ph3 readouts on assets with significant sales potential in the past year, as well as a strong performance from key growth drivers and pipeline.

Novartis expects mid-single-digit sales growth and high-single-digit core operating income growth for fiscal 2024. Over the mid-term, it anticipates 5% net sales growth from 2023-2028 and a core operating income margin of 40% by 2027.

The Novartis Board of Directors proposed a 3.30 Swiss francs per share dividend payment for 2023, up 3.1% from the prior year. They also proposed the re-election of all current members of the Board of Directors, including the Board Chair.

In the fourth quarter, Novartis reported net income of $8.48 billion, which included $5.84 billion from discontinued operations following the Sandoz business spin-off. Earnings per share were $4.14, significantly higher than the previous year.

Revenue was up 8% to $11.42 billion from $10.58 billion the previous year. The increase was mainly driven by strong performances from several key products, including Entresto, Kisqali, Kesimpta, Cosentyx, and Pluvicto.

The company’s emerging growth markets generated 18% higher sales in constant currency rates, with China sales growing 38% due to a lower prior year base. In the Swiss exchange, Novartis shares were trading at 88.82 francs, down 4.07%. On the NYSE, the shares were at $102.74, down 4.7%.



Read more: Novartis Stock Down As Q4 Core EPS Miss Estimates; Sees Growth In FY24