Latest news with #Novartis'
Yahoo
02-06-2025
- Business
- Yahoo
Those who invested in Novartis (VTX:NOVN) five years ago are up 46%
The main point of investing for the long term is to make money. But more than that, you probably want to see it rise more than the market average. But Novartis AG (VTX:NOVN) has fallen short of that second goal, with a share price rise of 14% over five years, which is below the market return. But if you include dividends then the return is market-beating. Meanwhile, the last twelve months saw the share price rise 1.4%. Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). Over half a decade, Novartis managed to grow its earnings per share at 15% a year. The EPS growth is more impressive than the yearly share price gain of 3% over the same period. Therefore, it seems the market has become relatively pessimistic about the company. You can see below how EPS has changed over time (discover the exact values by clicking on the image). We know that Novartis has improved its bottom line lately, but is it going to grow revenue? This free report showing analyst revenue forecasts should help you figure out if the EPS growth can be sustained. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Novartis the TSR over the last 5 years was 46%, which is better than the share price return mentioned above. This is largely a result of its dividend payments! Novartis' TSR for the year was broadly in line with the market average, at 5.0%. We should note here that the five-year TSR is more impressive, at 8% per year. Although the share price growth has slowed, the longer term story points to a business well worth watching. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Novartis has 1 warning sign we think you should be aware of. For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Swiss exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time Magazine
08-05-2025
- Health
- Time Magazine
Vas Narasimhan
Early in Vas Narasimhan's career as a physician scientist, he worked on programs for treating HIV/AIDS in Africa and saw the impact of medicine in places that need it most. The experience inspired Narasimhan to lead development of drugs and vaccines for more than two decades. But treatments didn't always reach the neediest, and he 'dreamed of having a much bigger impact on the world,' he says. In 2018, he became CEO of Novartis and seized the opportunity to direct the company's vast resources for transformative change. In the past year alone, the U.S. Food and Drug Administration (FDA) has approved new uses of Novartis' drugs for three devastating diseases: breast cancer, chronic myeloid leukemia, and prostate cancer. 'These approvals will change the paradigm for treating cancer patients,' Narasimhan says. The medicine now approved for use against prostate cancer, called Pluvicto, is an example of Novartis' investment in radioligand therapy—where a small radioactive molecule, delivered intravenously, destroys cancer cells while sparing healthy tissue. Narasimhan thinks it could revolutionize medicine. He is similarly excited about AI, which is accelerating Novartis' clinical trials, and the company's cell and gene therapies, including a new form of its treatment for spinal muscular atrophy designed to help a broader range of children. The CEO hasn't forgotten his scientist roots, still scrutinizing the data from clinical trials. He's also staying true to his ultimate goal: 'advancing these novel technologies at scale.' With his leadership, Novartis last year became the No. 1 pharmaceutical company for improving access to medicine in low-to-middle-income countries, according to the Access to Medicine Foundation. More than 1 billion people in over 70 countries have received Novartis' treatments for malaria largely at no profit to the company, Narasimhan says. Bringing his early-career visions of changemaking to fruition, he says, is 'incredibly rewarding.'
Yahoo
06-05-2025
- Business
- Yahoo
Statutory Profit Doesn't Reflect How Good Novartis' (VTX:NOVN) Earnings Are
Novartis AG (VTX:NOVN) just reported healthy earnings but the stock price didn't move much. Investors are probably missing some underlying factors which are encouraging for the future of the company. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. For anyone who wants to understand Novartis' profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit was reduced by US$2.2b due to unusual items. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And that's hardly a surprise given these line items are considered unusual. Assuming those unusual expenses don't come up again, we'd therefore expect Novartis to produce a higher profit next year, all else being equal. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Because unusual items detracted from Novartis' earnings over the last year, you could argue that we can expect an improved result in the current quarter. Because of this, we think Novartis' earnings potential is at least as good as it seems, and maybe even better! And the EPS is up 46% over the last twelve months. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. Every company has risks, and we've spotted 1 warning sign for Novartis you should know about. This note has only looked at a single factor that sheds light on the nature of Novartis' profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-05-2025
- Business
- Yahoo
Novartis AG Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
The first-quarter results for Novartis AG (VTX:NOVN) were released last week, making it a good time to revisit its performance. Revenues were US$13b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$1.83 were also better than expected, beating analyst predictions by 11%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year. Our free stock report includes 1 warning sign investors should be aware of before investing in Novartis. Read for free now. Following last week's earnings report, Novartis' 17 analysts are forecasting 2025 revenues to be US$54.0b, approximately in line with the last 12 months. Statutory earnings per share are predicted to accumulate 4.2% to US$6.84. In the lead-up to this report, the analysts had been modelling revenues of US$53.4b and earnings per share (EPS) of US$6.52 in 2025. So the consensus seems to have become somewhat more optimistic on Novartis' earnings potential following these results. See our latest analysis for Novartis The consensus price target was unchanged at CHF99.20, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Novartis, with the most bullish analyst valuing it at CHF116 and the most bearish at CHF78.01 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure. Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Novartis' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 2.2% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 0.4% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.4% annually for the foreseeable future. So although Novartis' revenue growth is expected to improve, it is still expected to grow slower than the industry. The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Novartis' earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Novartis' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. With that in mind, we wouldn't be too quick to come to a conclusion on Novartis. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Novartis analysts - going out to 2027, and you can see them free on our platform here. Even so, be aware that Novartis is showing 1 warning sign in our investment analysis , you should know about... Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
02-05-2025
- Business
- Yahoo
Novartis AG Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
The first-quarter results for Novartis AG (VTX:NOVN) were released last week, making it a good time to revisit its performance. Revenues were US$13b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$1.83 were also better than expected, beating analyst predictions by 11%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year. Our free stock report includes 1 warning sign investors should be aware of before investing in Novartis. Read for free now. Following last week's earnings report, Novartis' 17 analysts are forecasting 2025 revenues to be US$54.0b, approximately in line with the last 12 months. Statutory earnings per share are predicted to accumulate 4.2% to US$6.84. In the lead-up to this report, the analysts had been modelling revenues of US$53.4b and earnings per share (EPS) of US$6.52 in 2025. So the consensus seems to have become somewhat more optimistic on Novartis' earnings potential following these results. See our latest analysis for Novartis The consensus price target was unchanged at CHF99.20, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Novartis, with the most bullish analyst valuing it at CHF116 and the most bearish at CHF78.01 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure. Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Novartis' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 2.2% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 0.4% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.4% annually for the foreseeable future. So although Novartis' revenue growth is expected to improve, it is still expected to grow slower than the industry. The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Novartis' earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Novartis' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. With that in mind, we wouldn't be too quick to come to a conclusion on Novartis. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Novartis analysts - going out to 2027, and you can see them free on our platform here. Even so, be aware that Novartis is showing 1 warning sign in our investment analysis , you should know about... Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
