Novartis Reports Q4 Net Income Plunge, Yet EPS Shows Growth

Novartis faces a mixed financial report for Q4. Despite a significant drop in net income, the company's earnings per share improved, indicating resilience and potential future growth.

Date: 31-01-2025

AI Rating: 6

Net Income and Earnings Per Share (EPS)
Novartis reported a net income of $2.82 billion for the fourth quarter, a notable decrease from $8.48 billion in the previous year. However, when excluding discontinued operations of Sandoz Group AG, the net income from continuing operations actually grew by 7%, highlighting a more stable underlying business performance. Earnings per share fell to $1.42 from $4.14 year-over-year but showed an increase of 10% on a continuing operations basis, from $1.29 to $1.42.

Core Net Income
Core net income for the quarter was reported at $3.93 billion, translating to $1.98 per share, compared to $3.13 billion or $1.53 per share in the prior year, indicating overall operational strength.

Revenue Growth
Novartis achieved net sales of $13.15 billion, a 15% increase from $11.42 billion year-over-year, surpassing expectations of $12.82 billion for the quarter. This growth signals strong demand and market positioning.

Future Projections
For fiscal 2025, Novartis projects mid-to-high single-digit sales growth and high single to low double-digit growth in core operating income, suggesting optimism and a positive outlook for continued performance.

Dividends
The Board of Directors has proposed a dividend of CHF 3.50 per share, marking a 6.1% increase from the previous year, reflecting an ongoing commitment to returning value to shareholders.

Stocks: NVS