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Drug, Biotech Stocks' Q4 Earnings Due on Jan 31: NVO, NVS & GSK
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The fourth-quarter 2023 reporting cycle of the Medical sector is about to pick up pace this week. The sector mainly comprises pharma/biotech and medical device companies.
The earnings season for the drug and biotech sector kicked off last week when bellwether Johnson & Johnson (JNJ - Free Report) reported better-than-expected fourth-quarter results. It beat estimates for earnings as well as sales, primarily due to the strong performance of its Innovative Medicines segment.
Per the Earnings Trends report, as of Jan 24, 8.3% of the companies in the Medical sector — representing 25.9% of the sector’s market capitalization — reported quarterly earnings. Of these, 60% outperformed on earnings while 100% beat revenue estimates. Earnings increased 3.3% year over year, while revenues increased 7.9%. Overall, fourth-quarter earnings of the Medical sector are expected to decline 22.2%, while sales are expected to rise 4.2% from the year-ago quarter.
Novo Nordisk (NVO - Free Report) , Novartis (NVS - Free Report) and GSK plc (GSK - Free Report) are scheduled to release their respective fourth-quarter earnings reports before the opening bell on Jan 31.
Let’s see how these biotech/pharma companies might have performed in the soon-to-be-reported quarter.
Novo Nordisk
Novo Nordisk has a mixed earnings surprise history. NVO’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, matched once and missed on another occasion, delivering an average earnings surprise of 0.58%. In the last reported quarter, NVO beat earnings estimates by 5.8%.
Per our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) have a good chance of delivering an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
For the quarter to be reported, Novo Nordisk has an Earnings ESP of +0.89% and a Zacks Rank #1, indicating a likely positive surprise. The Zacks Consensus Estimate for the company’s current quarter adjusted EPS is pegged at 66 cents. You can see the complete list of today’s Zacks #1 Rank stocks here.
Novo Nordisk’s fourth-quarter revenues are likely to have been boosted by the higher sales of Diabetes and Obesity Care products. Diabetes medicines like Ozempic and Rybelsus are expected to have put up a strong performance in the to-be-reported quarter. Sales of Obesity Care drugs, Saxenda and Wegovy, are likely to have been encouraging.
Novo Nordisk A/S Price, Consensus and EPS Surprise
Novartis has an impressive track record, beating earnings expectations in each of the trailing four quarters and delivering a four-quarter average earnings surprise of 6.99%. In the last reported quarter, NVS beat earnings estimates by 2.35%.
For the quarter to be reported, Novartis has an Earnings ESP of +3.39% and a Zacks Rank #3, suggesting a likely earnings beat this time around. The Zacks Consensus Estimate for Novartis’ earnings is pegged at $1.67 per share.
Novartis’ revenues in the fourth quarter of 2023 are likely to have been driven by key drugs like Kesimpta, Entresto, Kisqali and Pluvicto. With the successful spin-off of the Sandoz business in October 2023, Novartis operates as a single global operating segment, focused on innovative medicines. It now concentrates on four core therapeutic areas (cardiovascular, renal and metabolic, immunology, neuroscience and oncology).
GSK has an impeccable earnings track record, having surpassed estimates in each of the trailing four quarters and delivering a beat of 11.02% on average. In the last reported quarter, GSK beat earnings estimates by 15.6%.
For the quarter to be reported, GSK has an Earnings ESP of +0.63% and a Zacks Rank #3, suggesting a likely earnings beat this time around. The Zacks Consensus Estimate for GSK’s earnings is pegged at 80 cents per share.
In the fourth quarter of 2023, higher revenues from the sales of GSK’s newer products like Arexvy, Cabenuva, Dovato, Trelegy Ellipta and Shingrix are likely to have offset the decline in sales of older HIV drugs and respiratory medicines due to generic erosion and competitive pressure.
GSK PLC Sponsored ADR Price, Consensus and EPS Surprise
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Drug, Biotech Stocks' Q4 Earnings Due on Jan 31: NVO, NVS & GSK
The fourth-quarter 2023 reporting cycle of the Medical sector is about to pick up pace this week. The sector mainly comprises pharma/biotech and medical device companies.
The earnings season for the drug and biotech sector kicked off last week when bellwether Johnson & Johnson (JNJ - Free Report) reported better-than-expected fourth-quarter results. It beat estimates for earnings as well as sales, primarily due to the strong performance of its Innovative Medicines segment.
Per the Earnings Trends report, as of Jan 24, 8.3% of the companies in the Medical sector — representing 25.9% of the sector’s market capitalization — reported quarterly earnings. Of these, 60% outperformed on earnings while 100% beat revenue estimates. Earnings increased 3.3% year over year, while revenues increased 7.9%. Overall, fourth-quarter earnings of the Medical sector are expected to decline 22.2%, while sales are expected to rise 4.2% from the year-ago quarter.
Novo Nordisk (NVO - Free Report) , Novartis (NVS - Free Report) and GSK plc (GSK - Free Report) are scheduled to release their respective fourth-quarter earnings reports before the opening bell on Jan 31.
Let’s see how these biotech/pharma companies might have performed in the soon-to-be-reported quarter.
Novo Nordisk
Novo Nordisk has a mixed earnings surprise history. NVO’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, matched once and missed on another occasion, delivering an average earnings surprise of 0.58%. In the last reported quarter, NVO beat earnings estimates by 5.8%.
Per our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) have a good chance of delivering an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
For the quarter to be reported, Novo Nordisk has an Earnings ESP of +0.89% and a Zacks Rank #1, indicating a likely positive surprise. The Zacks Consensus Estimate for the company’s current quarter adjusted EPS is pegged at 66 cents. You can see the complete list of today’s Zacks #1 Rank stocks here.
Novo Nordisk’s fourth-quarter revenues are likely to have been boosted by the higher sales of Diabetes and Obesity Care products. Diabetes medicines like Ozempic and Rybelsus are expected to have put up a strong performance in the to-be-reported quarter. Sales of Obesity Care drugs, Saxenda and Wegovy, are likely to have been encouraging.
Novo Nordisk A/S Price, Consensus and EPS Surprise
Novo Nordisk A/S price-consensus-eps-surprise-chart | Novo Nordisk A/S Quote
Novartis
Novartis has an impressive track record, beating earnings expectations in each of the trailing four quarters and delivering a four-quarter average earnings surprise of 6.99%. In the last reported quarter, NVS beat earnings estimates by 2.35%.
For the quarter to be reported, Novartis has an Earnings ESP of +3.39% and a Zacks Rank #3, suggesting a likely earnings beat this time around. The Zacks Consensus Estimate for Novartis’ earnings is pegged at $1.67 per share.
Novartis’ revenues in the fourth quarter of 2023 are likely to have been driven by key drugs like Kesimpta, Entresto, Kisqali and Pluvicto. With the successful spin-off of the Sandoz business in October 2023, Novartis operates as a single global operating segment, focused on innovative medicines. It now concentrates on four core therapeutic areas (cardiovascular, renal and metabolic, immunology, neuroscience and oncology).
Novartis AG Price, Consensus and EPS Surprise
Novartis AG price-consensus-eps-surprise-chart | Novartis AG Quote
GSK
GSK has an impeccable earnings track record, having surpassed estimates in each of the trailing four quarters and delivering a beat of 11.02% on average. In the last reported quarter, GSK beat earnings estimates by 15.6%.
For the quarter to be reported, GSK has an Earnings ESP of +0.63% and a Zacks Rank #3, suggesting a likely earnings beat this time around. The Zacks Consensus Estimate for GSK’s earnings is pegged at 80 cents per share.
In the fourth quarter of 2023, higher revenues from the sales of GSK’s newer products like Arexvy, Cabenuva, Dovato, Trelegy Ellipta and Shingrix are likely to have offset the decline in sales of older HIV drugs and respiratory medicines due to generic erosion and competitive pressure.
GSK PLC Sponsored ADR Price, Consensus and EPS Surprise
GSK PLC Sponsored ADR price-consensus-eps-surprise-chart | GSK PLC Sponsored ADR Quote
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