Novo Nordisk (NYSE:NVO) shares gained more than 4% Wednesday after the company reported its latest quarterly and full-year 2023 earnings.
The company said sales increased by 31% in Danish kroner (DKK) to DKK 232.3 billion in 2023. Meanwhile, operating profit increased by 37% to DKK 102.6 billion.
"We are very pleased with the strong performance in 2023, reflecting that more than 40 million people are now benefiting from our innovative diabetes and obesity treatments," said Lars Fruergaard Jørgensen, president and CEO of NVO. "We continue to make progress on our strategic aspirations.
Reacting to the report, analysts at Jefferies maintained an Underperform rating and DKK465 price target on the stock, stating the outlook was as expected.
"4Q focus drugs Wegovy below cons as anticipated, but Ozempic 14% & Rybelsus 14% ahead as US rebates again lower than norms," the analysts wrote. "US Wegovy starter dose supply began gradually rising in Jan but will be a focus for the call. Better gross margin offset by higher spend for 5% EBIT & 5% EPS beats."
They added that the initial 2024 outlook was broadly as expected but suggests up to "+3% potential consensus sales and EBIT upgrades to the upper-ends given the higher base."