Novartis AG is scheduled to release its financial earnings for the second-quarter of fiscal 2016 on July 19, 2016, before the opening bell. A research firm anticipates the company to post a higher profit, but their revenue is expected to decline as sales on some top blockbuster drugs on approaching patent cliffs remained steady.   

The drugmaker’s newly-launched drugs consistently show disappointing results. Meanwhile, its growing reach in the market expansion of biosimilars serves as their only hope that can reverse revenue’s growth to advance.     

Further, the Swiss pharmaceutical giant had a disappointing record in topping the analysts’ forecast. NVS stock is expected to hold a fresh blow earnings results as well.

Among the last nine quarters of the company, seven of which have missed the consensus estimates and it holds about 0.45% in average basis. Thus, the company is also expected to hold the same trend for the previous quarter.


According to analysts’ forecasts, the pharmaceutical firm is anticipated to issue a $2.83 billion net income for the second quarter, suggesting an increase of 30.1% on a year-over-year (YoY) basis, compared to a $2.18 billion for the second quarter of fiscal year 2015.    

Given a consistent basis, it is likely that the net income will grow about 46.7% as compared to $1.93 billion.

Earning per share (EPS) of the company in exclusion of one-time costs, is anticipated to settle at $1.19, suggesting a 33.9% increase on YoY, compared to $0.89 for the quarter. In addition, EPS seemed to post higher by 46.9% sequentially against last quarter’s forecast of $0.81.  

As the hopeless revenue results of the company’s performance continue to weigh, analysts therefore forecasted revenue to end at $12.18 billion in the reporting quarter, with a 4.1% YoY decline as compared to recent estimates of $12.69 billion for the same period of the prior year.


Heightened expectations on the company’s revenue signifies a broadly higher drop of 4.96% at $11.6 billion, on a sequential basis.

Novartis Operating Profit Falls?

The core operating profit of Novartis warned a possible decline this year as spending on marketing new heart failure drug Entresto were significantly rallying amid the second half.

"As a consequence of this additional investment, and depending on the erosion curve of (cancer drug) Gleevec, core operating income is expected to be broadly in line with the prior year or decline low-single digit" at constant currencies, it said.

Subsequently, the company said, profits are expected to hold the same trend with 2015.

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