Scooting past analyst estimates for its latest quarter gave Novartis (NVS 3.96%) a lift on Tuesday. Investors like what they heard about the global healthcare company's inaugural earnings release for 2024, and rewarded Novartis with a more than 2% lift in its stock price today. The shares did better than the S&P 500 index, which had a relatively good trading session with a 1.2% gain.
Double beats in the first quarter
In its first quarter, Novartis managed to boost net sales by 11% year over year to $11.8 billion. The pharmaceutical company's core net income rose by 14% to hit $3.68 billion ($1.80 per share).
Both headline figures came in above the average analyst estimates. Collectively, prognosticators tracking the company were anticipating it would post net sales of $11.43 billion, and a per-share core net income of $1.67.
"Our performance was broad-based, across all key growth brands and geographies," CEO Vas Narasimhan said.
The company came into 2024 with a new strategic focus. It now considers itself a "pure-play innovative medicines business." The current Novartis concentrates on four therapeutic areas, each of which it believes has excellent potential.
NYSE: NVS
Key Data Points
Guidance raised, although still not very specific
Novartis is clearly feeling confident about this recent strategic shift and its first-quarter results because it raised full-year 2024 guidance.
Management now believes net sales will grow by high-single-digit to low-double-digit percentages compared to 2023; previously it was forecasting a mid-single-digit increase. Core operating income is now anticipated to rise by low-double-digit to mid-teen percentages. This is an improvement over the former estimate in the high single digits. The company did not provide any guidance for either headline or core net income.
