In its first-quarter earnings press release, Novartis (NVS) reiterated YoY (year-over-year) revenue growth rate guidance in the mid-single digits for 2019. This projection was related to the company’s new focus on medicines following its spin-off of Alcon and didn’t include the revenue performances of Alcon or Sandoz’s US generic oral solids and dermatology business.
On September 6, 2018, Novartis issued a press release announcing its plan to sell off Sandoz’s US generic oral solids and dermatology business to Aurobindo Pharma. On April 9, the company issued a press release announcing the completion of the spin-off of Alcon’s eye care business.
Ready to put your morning scrolling to use? Sign up for Bagels & Stox, our witty take on the top market and investment news straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.
On March 14, 2019, Novartis issued a press release announcing the exit of then-Sandoz-CEO Richard Francis. In its first-quarter earnings press release, the company announced the appointment of Richard Saynor as the new CEO of Sandoz effective August 1, 2019.
Wall Street projections
Analysts expect Novartis’s revenues to see YoY changes of -3.86% to $49.90 billion in 2019, 3.89% to $51.84 billion in 2020, and 5.08% to $54.47 billion in 2021.
Analysts also expect Novartis’s revenues to see YoY changes of -12.50% to $11.51 billion in the second quarter, -10.73% to $11.41 billion in the third quarter, and -10.92% to $11.82 billion in the fourth quarter of 2019.
Foreign exchange impact
In its first-quarter earnings investor presentation, Novartis guided for a negative revenue impact of 3% due to foreign exchange movements in 2019 at mid-April exchange rates. In the first quarter, the company reported a negative revenue impact of 5% associated with foreign exchange fluctuations. The company has projected negative revenue impacts of 4% and 1% in the second and third quarters of 2019, respectively, but zero revenue impact in the fourth quarter due to foreign exchange movements.