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Sanofi’s Quarterly Revenue Trend in 4Q17

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Mar. 1 2018, Published 2:46 p.m. ET

Sanofi’s 4Q17 revenues

Pharmaceutical company Sanofi’s product portfolio includes specialized pharmaceutical products, generic medicines, vaccines, and consumer healthcare products. Sanofi (SNY) reported revenues of 8.7 billion euros in 4Q17, a decline of ~2.0% compared to revenues of 8.9 billion euros in 4Q16. Sanofi reported earnings per share (or EPS) of 1.06 euros in 4Q17. 

The chart below compares the quarterly revenues for Sanofi since 1Q16.

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4Q17 revenues

Sanofi (SNY) missed Wall Street analysts’ estimates for revenues and EPS in 4Q17. Sanofi reported EPS of 1.06 euros on revenues of 8.7 billion euros compared to EPS estimates of 0.98 euros on revenues of 8.5 billion euros in 4Q17.

The company reported a 4.1% growth in operating revenues. This trend includes 16.8% growth in operating revenues from Sanofi Genzyme, 8.7% growth in operating revenues from vaccine sales, and 51.8% growth in operating revenues from its consumer healthcare products in 4Q17. This growth was offset by lower sales of general medicines, cardiovascular, and diabetes products, as well as lower sales from emerging markets in 4Q17.

Profitability for 4Q17

Sanofi’s gross profit margin decreased to ~67.8% in 4Q17 compared to 70.2% in 4Q16 due to its increased cost of sales. The company’s net income decreased to 1.3 billion euros in 4Q17 compared to net income of 1.6 billion euros in 4Q16.

2017 revenues

Sanofi (SNY) missed Wall Street analysts’ estimates for revenues and EPS in 2017. Sanofi reported EPS of 5.54 euros on revenues of 35.1 billion euros. In comparison, its EPS estimate was 5.49 euros on revenues of 34.5 billion euros in fiscal 2017.

The First Trust Value Line Dividend ETF (FVD) holds 6.9% of its total investments in healthcare companies. FVD holds ~0.5% in Sanofi ADR (SNY), ~0.5% in Medtronic Plc. (MDT), ~0.5% in Amgen (AMGN), and ~0.5% in GlaxoSmithKline ADR (GSK).

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