Novartis stock continued a three-day sprint Tuesday after the Swiss drugmaker beat first-quarter expectations on the back of blockbusters Cosentyx and Entresto.
Cosentyx, a treatment for inflammatory conditions like psoriasis, brought in $1.33 billion in sales, growing 23% year over year and walloping forecasts for $1.18 billion, according to FactSet. Sales of heart failure treatment Entresto soared 34% to $1.88 billion, beating projections for $1.58 billion.
Novartis stock hiked 2.3% higher to 97.28. Shares briefly topped their key moving averages, but closed below those points, MarketSurge.com research shows. Over the past three days, shares have surged 5%.
"The overall financial performance and guidance raise likely explain the decent strength in the shares," David Song, chief investment officer for Tema ETFs, said in an email to Investor's Business Daily. Tema holds Novartis in its Obesity and Cardiometabolic exchange traded fund.
Novartis Stock Jumps On Earnings Beat
In the March quarter, Novartis earned $1.80 per share on $11.83 billion in sales. Core earnings jumped 17% and beat forecasts for $1.68 a share. Sales climbed 10%. Analysts projected $11.44 billion in sales.
While Cosentyx and Entresto were standouts, Tema's Song noted sales of Pluvicto came up short. Pluvicto belongs to the radiopharmaceuticals space, which is growing in popularity with a series of recent buyouts. Pluvicto sales soared 47% to $310 million, but missed forecasts for $327.7 million.
Still, Novartis raised its outlook for the year. The company now expects sales to increase by a high-single to low double-digit percentage, and for core operating income to rise by low double-digits to midteens. Wall Street projected core earnings of $7.05 a share and $48.16 billion in sales.
Despite the recent run-up, Novartis stock remains well below its recent record high of 108.78, achieved in January. Shares have fallen 12.6% from that point, as of Monday's close.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
