What To Expect On Novo Nordisk Earnings?
Novo Nordisk A/S is scheduled to report financial earnings for the second quarter of fiscal 2016 on August 5. Analysts are expecting the drug maker to post 28.3 billion Danish kroner in the soon-to-be-announced results with a 4.7% annual growth.
The portfolio of the drug giant covers new generation insulin, including modern insulin, human insulin, Victoza, and other diabetes and obesity care molecules. It is the leading drug maker in the market in line with a diabetes therapeutic field with its rivals Sanofi, Eli Lilly, and Merck.
NovoRapid is the drug giant’s flagship product which is expected to settle at 5.3 billion Danish kroner in the second quarter.
Meanwhile, Victoza has been performing well in the therapeutic market as physicians and patients had a positive impression on it, with expectations that the molecule will end at 5.1 billion Danish kroner for this quarter.
Analysts expect an 85.3% gross margin for the second quarter, along with a 34.8% expected net margin, suggesting a 3.9% growth compared to an earlier growth of 30.8% in the same period to the prior year.
The drug maker runs two business portfolios which include diabetes and obesity care, and Biopharmaceuticals. Elsewhere in the first quarter of fiscal 2016, diabetes and obesity care posted 6% growth, while the Biopharmaceutical sales gained 15%.
In a conducted survey with two brokerage houses from July 28, 2016, one issued a Buy rating, while the other suggest a Hold rating on the Novo stock.
Novo Nordisk Drifts Down
Novo Nordisk A/S stocks have seen a massive move today as about 386,129 shares changed hands amid session. The drug giant has seen a 1.21% slump since December last year, citing a down trend.
Subsequently, the company has underperformed the S&P500 by about 6.54%. The surprising move came after a 5-month negative chart settled for the $113.70 billion company, according to reports. Novo Nordisk is expected to touch below $6.82 billion if the $52.88 PT is reached.
Market players are closely watching for the upcoming financial earnings report of the company on August 4. Analysts are expecting the drug maker to post a $0.57 earnings per share (EPS) or $0.09 from last year’s $0.48 per share.
Given a $0.55 actual EPS announced by the company for the last quarter, analysts now estimate a 3.64% EPS growth.
Among 5 analysts that covers Novo Nordisk, 2 of which gave a Buy rating, 1 issued a Sell rating, while 2 affirmed a Hold rating, suggesting that 40% remained positive.
Based on the recent data, the drug giant has been the topic of 5 analyst reports since August last year. In addition, Goldman Sachs upgraded the stock to Conviction Buy rating on February 15.
According to Zacks Investment Research, “Novo Nordisk is a world leader in insulin and diabetes care and also manufactures and markets a variety of other pharmaceutical products. Furthermore the company is the world’s largest producer of industrial enzyme products. The company believes that everyone must care for the environment and our natural resources.”
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