In the wake of its spinoff from Sandoz (SIX:SDZ), Novartis (SIX:NOVN) is poised to announce its third quarter results today, with analysts and investors keenly watching for signs of growth in its innovative medicines segment. The company's Q3 sales are projected to be $11.62 billion, marking a decrease from last year's $12.54 billion. According to InvestingPro Data, the company's revenue growth for the second quarter of 2023 was at a slight 0.54%, with a quarterly growth of 6.5%.
Despite the anticipated drop in sales, Novartis is expected to report a rise in core net profit to $3.51 billion, up from $3.42 billion in the same period last year. This increase can be attributed to the company's strategic shift towards innovative medicines, with key drugs such as Pluvicto, Kisqali, and Kesimpta playing a crucial role in future growth. The company's shift towards innovative medicines aligns with an InvestingPro Tip that highlights Novartis as a prominent player in the Pharmaceuticals industry.
The oncology drug Pluvicto has been under close scrutiny following new data presented at an oncology congress. Investors will be eager for updates on the drug's performance and potential impact on Novartis' overall portfolio. The company's EBITDA for the second quarter of 2023 was $20.03 billion, showing a growth of 11.66% according to InvestingPro Data, which may indicate a positive impact of these innovative medicines on the company's earnings.
Novartis had a strong performance in the first half of 2023 which led to an upward revision of its 2023 guidance in July. Given this momentum, analysts predict another increase in the core operating profit forecast. This aligns with an InvestingPro Tip which mentions that the company has been profitable over the last twelve months, and that analysts predict the company will continue to be profitable this year.
The company's focus on innovative medicines post-Sandoz spinoff and its strong H1 performance underscore a strategic shift that could shape Novartis' future trajectory. As the Q3 results are unveiled today, stakeholders will be closely watching for signs of sustained growth and profitability. With a market cap of $195.65 billion and a P/E ratio of 26.3, according to InvestingPro Data, Novartis continues to be a significant player in the pharmaceutical industry. For more insights and tips, you can explore further on InvestingPro, which offers a wealth of additional tips and real-time metrics.
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