Novartis in Q3 2018: Analysts Expect Revenue Growth



Novartis’s revenue estimates

Analysts expect Novartis’s revenues to increase ~4.9% to $13.02 billion in the third quarter of 2018. There has been operating revenue growth for all three of its segments in the quarter.

The above chart compares actual quarterly revenues since the first quarter of 2017 and shows analysts’ estimate for the third quarter of 2018.

Let’s look next at Novartis’s three business segments.

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Innovative Medicines

Analysts expect Novartis’s Innovative Medicines segment to report revenue growth in the third quarter of 2018 compared to the third quarter of 2017. Growth is expected to be driven by strong volume growth due to the strong performance of cardiometabolic, oncology, immunology, hepatology, dermatology, neuroscience, and respiratory products. They could be partially offset by lower sales of ophthalmology products and established medicines.


Sandoz, Novartis’s generic pharmaceuticals segment, is expected to report revenue growth in the third quarter of 2018 due to strong sales of Zarxio, biopharmaceutical products Rixathon and Erelzi, and biosimilars outside the US market.

Novartis announced on September 6 that it has agreed to sell select portions of its Sandoz US portfolio to Aurobindo Pharma USA for $0.9 billion in cash and $0.1 billion of potential earn-outs. The select portions include Sandoz US dermatology and generic US oral solids.


Alcon, Novartis’s eye care segment, is expected to report revenue growth in the third quarter of 2018 due to strong sales of surgical products and vision care products worldwide.

Alcon announced on September 11 that it will locate its headquarters in Geneva, Switzerland, after the completion of the proposed spinoff from Novartis.

The First Trust Value Line Dividend ETF (FVD) holds 0.5% in Novartis (NVS), 0.5% in Merck & Co. (MRK), 0.5% in Sanofi (SNY), and 0.5% in Pfizer (PFE).


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