Novartis: Good quarterly margins but significant miss at the top-line levelBUY, Fair Value CHF110 (+21%)
Mixed numbers today for Novartis which reported Q3 figures. Although margins are ahead of expectations and mainly reflect good cost control and favourable mix effect in Pharmaceuticals (higher growth in Specialty Care + GSK Oncology booking effect), the miss at the top-line level is very significant. Nothing to specifically worry about but the 3% difference to expectations should translate into a negative share price reaction as core EPS at USD1.27 is also USD0.02-0.03 below estimates.
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