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Novartis’s 4Q17 Revenues and Fiscal 2017 Revenues

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An overview of Novartis

Headquartered in Switzerland, Novartis AG (NVS) develops, manufactures, and commercializes various pharmaceuticals and healthcare products worldwide. The company reported ~33.6% of its total 4Q17 revenues from US markets.

More than 66.0% of its total revenues were reported from outside its US markets in 4Q17. The chart below compares revenues for Novartis since 1Q16.

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4Q17 revenues

Novartis (NVS) surpassed Wall Street analysts’ estimates for earnings per share (or EPS) and revenues for 4Q17, reporting EPS of $1.21 on revenues of ~$12.9 billion in 4Q17. Its EPS estimate was $1.19 on revenues of ~$12.8 billion.

Novartis reported revenues of ~$12.9 billion in 4Q17 for 5.0% growth in revenues compared to ~$12.3 billion in 4Q16. This includes 2.0% growth in operating revenues and a 3.0% favorable impact of foreign exchange in 4Q17.

Its US sales decreased ~1.0% to ~$4.3 billion  4Q17, compared to ~$4.4 billion in 4Q16. The sales from European markets increased ~8.0% to ~$4.7 billion in 4Q17 compared to ~$4.3 billion in 4Q16.

Sales from its Asia, Africa, and Australasia markets increased ~8.0% to ~$2.9 billion in 4Q17 compared to ~$2.6 billion in 4Q16. The sales from Canada and Latin America increased ~7.0% to $1.0 billion in 4Q17 compared to $963.0 million in 4Q16.

2017 revenues

Novartis (NVS) surpassed Wall Street analysts’ estimates for earnings per share but missed the revenue estimates for 2017. The company reported EPS of $4.86 on revenues of ~$49.1 billion in 2017 compared with EPS estimates of $4.82 on revenues of ~$49.2 billion.

Novartis reported revenues of ~$49.1 billion in 2017, reflecting 1.0% growth in revenues compared to ~$48.5 billion in 2016. This includes 2.0% growth in operating revenues, offset by a 1.0% negative impact of foreign exchange in 2017.

US sales decreased ~1.0% to ~$16.9 billion in 2017 compared to ~$17.1 billion in 2016. The sales from European markets increased ~$17.5 billion in 2017 compared to ~$17.1 billion in 2016.

Sales from the Asia, Africa, and Australasia markets increased ~3.0% to ~$10.7 billion in 2017 compared to ~$10.4 billion in 2016. Its sales from Canada and Latin America increased ~2.0% to ~$4.0 billion in 2017 compared to $3.9 billion in 2016.

The First Trust Value Line Dividend ETF (FVD) holds 6.9% of its total investments in healthcare companies. FVD holds 0.5% in Novartis AG ADR (NVS), 0.5% in Abbott Laboratories (ABT), 0.5% in Pfizer (PFE), and 0.5% in Sanofi ADR (SNY).

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