Sanofi: Sales in line with our estimates but earnings a touch below in Q1
BUY, Fair Value EUR84.5 (+2%)
Sanofi unveiled its quarterly financial numbers this morning which came out slightly below consensus estimates. Although we are not surprised by the level of revenues, our understanding is that negative currency impacts (-2.5pp for the quarter) were underestimated. But the underlying performance is solid with Vaccines, Genzyme and Lantus driving growth and admittedly emerging markets a bit light (including with CHC in China and Generics in Brazil). However earnings were slightly behind expectations with a EUR41m loss due to the bolivar devaluation and marketing costs heavier than anticipated due to the MS sales force build-up. Core EPS comes out at EUR1.22 (-29%) where we had EUR1.31 for the quarter. Full-year guidance is unchanged.
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