Earnings Report: Here’s what to expect from Novartis (NYSE:NVS)

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Earnings results for Novartis (NYSE:NVS)

Novartis AG is expected* to report earnings on 10/27/2020 before market open. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 2 analysts’ forecasts, the consensus EPS forecast for the quarter is $1.42. The reported EPS for the same quarter last year was $1.41.

Novartis last released its earnings data on July 21st, 2020. The reported $1.36 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.31 by $0.05. The business had revenue of $11.35 billion for the quarter, compared to analysts’ expectations of $11.77 billion. Its revenue for the quarter was down 3.5% compared to the same quarter last year. Novartis has generated $5.24 earnings per share over the last year and currently has a price-to-earnings ratio of 26.8. Novartis has confirmed that its next quarterly earnings report will be published on Tuesday, October 27th, 2020.

Analyst Opinion on Novartis (NYSE:NVS)

9 Wall Street analysts have issued ratings and price targets for Novartis in the last 12 months. Their average twelve-month price target is $116.00, predicting that the stock has a possible upside of 37.80%. The high price target for NVS is $116.00 and the low price target for NVS is $116.00. There are currently 2 sell ratings, 2 hold ratings and 5 buy ratings for the stock, resulting in a consensus rating of “Hold.”

Novartis has received a consensus rating of Hold. The company’s average rating score is 2.33, and is based on 5 buy ratings, 2 hold ratings, and 2 sell ratings. According to analysts’ consensus price target of $116.00, Novartis has a forecasted upside of 37.8% from its current price of $84.18. Novartis has been the subject of 5 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Novartis (NYSE:NVS)

Novartis pays a meaningful dividend of 2.38%, higher than the bottom 25% of all stocks that pay dividends. Novartis has only been increasing its dividend for 1 years. The dividend payout ratio of Novartis is 38.36%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Novartis will have a dividend payout ratio of 31.70% next year. This indicates that Novartis will be able to sustain or increase its dividend.

Insiders buying/selling: Novartis (NYSE:NVS)

In the past three months, Novartis insiders have not sold or bought any company stock. Only 0.01% of the stock of Novartis is held by insiders. Only 10.37% of the stock of Novartis is held by institutions.

Earnings and Valuation of Novartis (NYSE:NVS

Earnings for Novartis are expected to grow by 10.65% in the coming year, from $5.73 to $6.34 per share. The P/E ratio of Novartis is 26.81, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 19.34. The P/E ratio of Novartis is 26.81, which means that it is trading at a less expensive P/E ratio than the Medical sector average P/E ratio of about 28.84. Novartis has a PEG Ratio of 1.84. PEG Ratios above 1 indicate that a company could be overvalued. Novartis has a P/B Ratio of 3.43. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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