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Reading Sanofi’s End-of-Year Analyst Estimates

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SNY’s analyst estimates

Sanofi (SNY) missed the Wall Street analysts’ estimate for revenues in 3Q17 but surpassed the estimate for EPS (earnings per share). Sanofi reported EPS of 1.79 euros on revenues of 9.05 billion euros, compared with the estimate of 1.71 euros in EPS on revenues of 9.44 billion euros.

The analysts are estimating revenues of 8.90 billion euros for 4Q17, which would represent a marginal YoY (year-over-year) growth when compared with its 8.87 billion euros in revenues in 4Q16.

For 4Q17, SNY’s gross margin is expected to rise to 69.0%, compared with 70.2% in 4Q16, while its EBITDA (earnings before interest, tax, depreciation, and amortization) margin is expected to reach 29.3% in 4Q17, compared with 44.2% in 4Q16. SNY’s net profit margin is expected to fall to 16.9% in 4Q17, compared with 18.1% in 4Q16.

Annual estimates

Wall Street analysts estimate that Sanofi will report EPS of 5.60 euros for 2017, compared with its EPS of 5.68 euros in 2016. Its revenues are expected to rise to 35.78 billion euros in 2017, which would mean a 5.8% rise over its 33.82 billion euros in revenues in 2016.

This growth is expected to be driven by Sanofi genzyme (its specialty care product sub-segment), Sanofi Pasteur (the human vaccines business), and consumer healthcare products.

SNY’s gross margin is expected to fall to 69.9% in 2017, compared with 71.0% in 2016, while its EBITDA margin is expected to fall to 32.8%, compared with 36.8% in 2016. Its net profit margin is expected to fall to 19.8% in 2017, compared with 13.9% in 2016.

Notably, the First Trust Value Line Dividend ETF (FVD) has 5.9% of its total investments in healthcare companies, with 0.5% in Sanofi ADR (SNY), 0.5% in Amgen (AMGN), 0.5% in Pfizer (PFE), and 0.5% in Eli Lilly (LLY).

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