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Novo Nordisk (NVO) to Report Q2 Earnings: What's in the Cards?
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Novo Nordisk (NVO - Free Report) is scheduled to release its second-quarter 2023 results on Aug 10.
The company’s earnings surprise history has been encouraging so far, with its earnings beating the Zacks Consensus Estimate in three of the trailing four quarters and missing in the remaining one, delivering an average beat of 0.35%. In the last reported quarter, Novo Nordisk’s reported earnings were on par with the Zacks Consensus Estimate of $1.27.
So far this year, shares of Novo Nordisk have risen 15.7% against the industry’s 0.4%.
Image Source: Zacks Investment Research
Let’s see how things have shaped up for the quarter to be reported.
Factors at Play
Novo Nordisk’s revenues in the last reported quarter were driven by higher sales of Diabetes and Obesity Care products. Diabetes medicines like Ozempic, Rybelsus and Victoza are expected to have put up a strong performance in the second quarter of 2023 as well.
Obesity Care (Saxenda and Wegovy) sales were up significantly year over year in the first quarter of 2023, primarily due to increased Wegovy uptake in the United States. Novo Nordisk had previously reported that a second contract manufacturer for Wegovy initiated production in April 2023 to meet the increasing demand for the drug. Hence, the strong sales trend of Wegovy is expected to have continued into the to-be-reported quarter, boosting revenues from this segment.
Strong growth in Saxenda sales is also likely to have boosted the top line in the second quarter of 2023.
Net sales in the Rare disease segment were down in the last reported quarter due to a temporary reduction in manufacturing output. This trend is likely to have continued in the second quarter. In the Rare Disease segment, only Hemophilia A and B drugs witnessed year-over-year growth in the previous quarter. These drugs are also likely to have contributed to the company's revenues in the to-be-reported quarter.
Intensifying competition from other pharma bigwigs, within both Diabetes care and Rare Disease units, is expected to have impacted Novo Nordisk’s performance in the yet-to-be-reported quarter.
Persistent pricing pressure within Diabetes Care, especially in the United States, is likely to have negatively impacted sales in the second quarter of 2023.
Higher costs driven by clinical activity for late-stage studies are likely to have escalated research and development costs in the quarter to be reported.
Higher distribution costs, promotional activities and Obesity care market development activities are likely to have spiked Novo Nordisk’s sales and distribution costs in the second quarter of 2023.
What Our Model Predicts
Our proven model does not conclusively predict 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.
Earnings ESP: Earnings ESP for NVO is 0.00%, as the Zacks Consensus Estimate and the Most Accurate Estimate are both currently pegged at $1.34 per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #2.
Novo Nordisk A/S Price, Consensus and EPS Surprise
Verastem’s stock has decreased by 4.5% year to date. Verastem beat earnings estimates in the last quarter delivering an earnings surprise of 11.11%. VSTM has an earnings surprise of 9.01%, on average.
bluebird bio (BLUE - Free Report) has an Earnings ESP of +9.16% and a Zacks Rank #3.
bluebird’s stock has declined 43.9% year to date. The company beat earnings estimates in each of the last four quarters. BLUE has a four-quarter earnings surprise of 88.25%, on average.
Caribou Biosciences (CRBU - Free Report) has an Earnings ESP of +5.64% and a Zacks Rank #2.
Caribou’s stock has gained 7% in the year so far. Caribou beat earnings estimates in three of the last four reported quarters and missed once. CRBU has a negative earnings surprise of 1.36%, on average.
Image: Shutterstock
Novo Nordisk (NVO) to Report Q2 Earnings: What's in the Cards?
Novo Nordisk (NVO - Free Report) is scheduled to release its second-quarter 2023 results on Aug 10.
The company’s earnings surprise history has been encouraging so far, with its earnings beating the Zacks Consensus Estimate in three of the trailing four quarters and missing in the remaining one, delivering an average beat of 0.35%. In the last reported quarter, Novo Nordisk’s reported earnings were on par with the Zacks Consensus Estimate of $1.27.
So far this year, shares of Novo Nordisk have risen 15.7% against the industry’s 0.4%.
Image Source: Zacks Investment Research
Let’s see how things have shaped up for the quarter to be reported.
Factors at Play
Novo Nordisk’s revenues in the last reported quarter were driven by higher sales of Diabetes and Obesity Care products. Diabetes medicines like Ozempic, Rybelsus and Victoza are expected to have put up a strong performance in the second quarter of 2023 as well.
Obesity Care (Saxenda and Wegovy) sales were up significantly year over year in the first quarter of 2023, primarily due to increased Wegovy uptake in the United States. Novo Nordisk had previously reported that a second contract manufacturer for Wegovy initiated production in April 2023 to meet the increasing demand for the drug. Hence, the strong sales trend of Wegovy is expected to have continued into the to-be-reported quarter, boosting revenues from this segment.
Strong growth in Saxenda sales is also likely to have boosted the top line in the second quarter of 2023.
Net sales in the Rare disease segment were down in the last reported quarter due to a temporary reduction in manufacturing output. This trend is likely to have continued in the second quarter. In the Rare Disease segment, only Hemophilia A and B drugs witnessed year-over-year growth in the previous quarter. These drugs are also likely to have contributed to the company's revenues in the to-be-reported quarter.
Intensifying competition from other pharma bigwigs, within both Diabetes care and Rare Disease units, is expected to have impacted Novo Nordisk’s performance in the yet-to-be-reported quarter.
Persistent pricing pressure within Diabetes Care, especially in the United States, is likely to have negatively impacted sales in the second quarter of 2023.
Higher costs driven by clinical activity for late-stage studies are likely to have escalated research and development costs in the quarter to be reported.
Higher distribution costs, promotional activities and Obesity care market development activities are likely to have spiked Novo Nordisk’s sales and distribution costs in the second quarter of 2023.
What Our Model Predicts
Our proven model does not conclusively predict 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.
Earnings ESP: Earnings ESP for NVO is 0.00%, as the Zacks Consensus Estimate and the Most Accurate Estimate are both currently pegged at $1.34 per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #2.
Novo Nordisk A/S Price, Consensus and EPS Surprise
Novo Nordisk A/S price-consensus-eps-surprise-chart | Novo Nordisk A/S Quote
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this time around.
Verastem (VSTM - Free Report) has an Earnings ESP of +6.68% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Verastem’s stock has decreased by 4.5% year to date. Verastem beat earnings estimates in the last quarter delivering an earnings surprise of 11.11%. VSTM has an earnings surprise of 9.01%, on average.
bluebird bio (BLUE - Free Report) has an Earnings ESP of +9.16% and a Zacks Rank #3.
bluebird’s stock has declined 43.9% year to date. The company beat earnings estimates in each of the last four quarters. BLUE has a four-quarter earnings surprise of 88.25%, on average.
Caribou Biosciences (CRBU - Free Report) has an Earnings ESP of +5.64% and a Zacks Rank #2.
Caribou’s stock has gained 7% in the year so far. Caribou beat earnings estimates in three of the last four reported quarters and missed once. CRBU has a negative earnings surprise of 1.36%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.