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The company’s earnings surprise history has been good so far, with its earnings beating the Zacks Consensus Estimate in three of the trailing four quarters and missing in the remaining one, the average beat being 3.09%. In the last reported quarter, Novo Nordisk delivered an earnings beat of 2.38%.
Shares of Novo Nordisk have gained 46.5% in the past year compared with the industry’s increase of 12.7%.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for the quarter to be reported.
What Our Model Predicts
Our proven model predicts an earnings beat for Novo Nordisk this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP for NVO is +11.25% as the Zacks Consensus Estimate currently stands at 80 cents per share and the Most Accurate Estimate is currently pegged at 89 cents per share.
Zacks Rank: The company currently carries a Zacks Rank #2.
Factors at Play
Novo Nordisk operates under two segments — Diabetes and Obesity Care, and Biopharmaceuticals.
Novo Nordisk’s revenues in the last reported quarter increased 15% at constant exchange rates, driven by higher sales of Diabetes and Obesity Care products, a trend that most likely continued in the fourth quarter as well. The Diabetes and Obesity Care segment’s sales grew 17% year over year in the last reported quarter, a trend that most likely continued in the fourth quarter as well.
Obesity Care (Saxenda and Wegovy) sales were up significantly year over year in the last reported quarter, a trend that most likely continued in the to-be-reported quarter.
Sales in the Rare disease segment grew 4% year over year in the last reported quarter, a trend that most likely continued in the to-be-reported quarter.
Higher costs driven by clinical activity for late-stage studies are likely to have escalated research and development costs in the third quarter.
Sales and distribution costs also increased year over year in the last reported quarter. This increase was due to International Operations and North America Operations reflecting promotional activities related to Ozempic and Rybelsus as well as Obesity care market development activities. The trend has most likely prevailed in the to-be-reported quarter.
Concurrent with the third quarter results, management stated that intensifying competition within both Diabetes care and Rare disease as well as a negative impact on global sales growth from Volume Based Procurement of insulin in China will impact the annual performance.
Persistent pricing pressure within Diabetes Care, especially in the United States, is likely to have negatively impacted sales in the fourth quarter.
Image: Bigstock
Is a Beat on the Cards for Novo Nordisk (NVO) in Q4 Earnings?
Novo Nordisk A/S (NVO - Free Report) is scheduled to release its fourth-quarter 2022 results on Feb 1 .
The company’s earnings surprise history has been good so far, with its earnings beating the Zacks Consensus Estimate in three of the trailing four quarters and missing in the remaining one, the average beat being 3.09%. In the last reported quarter, Novo Nordisk delivered an earnings beat of 2.38%.
Shares of Novo Nordisk have gained 46.5% in the past year compared with the industry’s increase of 12.7%.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for the quarter to be reported.
What Our Model Predicts
Our proven model predicts an earnings beat for Novo Nordisk this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP for NVO is +11.25% as the Zacks Consensus Estimate currently stands at 80 cents per share and the Most Accurate Estimate is currently pegged at 89 cents per share.
Zacks Rank: The company currently carries a Zacks Rank #2.
Factors at Play
Novo Nordisk operates under two segments — Diabetes and Obesity Care, and Biopharmaceuticals.
Novo Nordisk’s revenues in the last reported quarter increased 15% at constant exchange rates, driven by higher sales of Diabetes and Obesity Care products, a trend that most likely continued in the fourth quarter as well.
The Diabetes and Obesity Care segment’s sales grew 17% year over year in the last reported quarter, a trend that most likely continued in the fourth quarter as well.
Obesity Care (Saxenda and Wegovy) sales were up significantly year over year in the last reported quarter, a trend that most likely continued in the to-be-reported quarter.
Sales in the Rare disease segment grew 4% year over year in the last reported quarter, a trend that most likely continued in the to-be-reported quarter.
Higher costs driven by clinical activity for late-stage studies are likely to have escalated research and development costs in the third quarter.
Sales and distribution costs also increased year over year in the last reported quarter. This increase was due to International Operations and North America Operations reflecting promotional activities related to Ozempic and Rybelsus as well as Obesity care market development activities. The trend has most likely prevailed in the to-be-reported quarter.
Concurrent with the third quarter results, management stated that intensifying competition within both Diabetes care and Rare disease as well as a negative impact on global sales growth from Volume Based Procurement of insulin in China will impact the annual performance.
Persistent pricing pressure within Diabetes Care, especially in the United States, is likely to have negatively impacted sales in the fourth quarter.
Novo Nordisk AS Price, Consensus and EPS Surprise
Novo Nordisk AS price-consensus-eps-surprise-chart | Novo Nordisk AS Quote
Other Stocks to Consider
Sanofi (SNY - Free Report) has an Earnings ESP of +2.22% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sanofi beat earnings estimates in each of the trailing four quarters. It delivered an earnings surprise of 9.50%, on average.
Novartis (NVS - Free Report) has an Earnings ESP of +1.03% and a Zacks Rank #3.
NVS beat earnings estimate in three of the last four quarters, with the average earnings surprise being 0.64%.
Pfizer (PFE - Free Report) has an Earnings ESP of +0.48% and a Zacks Rank #3.
PFE beat earnings estimate in three of the last four quarters, with the average earnings surprise being 15.86%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.