By Marta Falconi
Novartis AG (NVS) is schedule to announce its fourth-quarter
earnings before the market opens Tuesday. Here's what you need to
know:
EARNINGS FORECAST: Core net income of $2.83 billion is the
consensus of analysts surveyed by Dow Jones, compared with $2.89
billion reported a year earlier. Core net profit attributable to
shareholders is forecast at $2.84 billion, compared to $2.86
billion a year earlier.
REVENUE FORECAST: Revenue of $14.68 billion is forecast,
compared with $14.93 billion reported the year earlier.
WHAT TO WATCH:
--DIOVAN SALES: Following the launch in July of a generic
version of the blockbuster hypertension drug, sales are expected to
continue to decline.
--CHANGES IN THE BUSINESS MIX: focus on updates on the
transactions announced last year with GlaxoSmithKline and Eli
Lilly.
--COST-SAVINGS: Investors are keen on details on the
implementation of the Business Services project, which aims at
consolidating back-office functions, as part of Novartis's wider
cost-saving and margin improvement efforts.
--FX: Currency swings following the Swiss National Bank's
decision to scrap its cap for the Swiss franc against the euro will
impact 2015 guidance, analysts say.
--LCZ696: Any commentary on this treatment for heart failure
--possibly Novartis's hottest pipeline asset-- would be the focus
of interest.
Write to Marta Falconi at marta.falconi@wsj.com
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