Novo Nordisk (NVO) reported better-than-expected earnings for the third quarter. The Danish pharmaceutical company’s net profit rose by 21% year-over-year to DKK 27.3 billion ($3.92 billion), exceeding consensus estimates of DKK 26.95 billion.
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NVO’s Weight Loss Drug Boosts Revenues
The company’s revenues increased by 21% year-over-year to DKK 71.3 billion in the third quarter. Sales of its popular weight-loss drug Wegovy surged 79% year-over-year, reaching DKK 17.3 billion. This strong performance reflects robust sales growth in both North America and globally, driven by rising demand for GLP-1 products, including Ozempic and Wegovy, which have seen unprecedented demand in recent years.
NVO Narrows FY24 Guidance
Looking ahead, the company narrowed its sales growth outlook for FY24 to a range of 23% to 27%, from 22% to 28%, at constant exchange rates. It now expects its operating profit growth guidance to be between 21% and 27%, compared to its prior estimate of 20% to 28%, both at constant exchange rates.
Novo Nordisk’s revised outlook reflects ongoing supply constraints at certain manufacturing sites and periodic drug shortages in various regions. However, the company stated that it is investing to expand its production capacity both internally and externally to increase its supply in the short and long term.
Is NVO a Good Stock to Buy?
Analysts remain bullish about NVO stock, with a Strong Buy consensus rating based on six Buys and two Holds. Over the past year, NVO has increased by more than 6%, and the average NVO price target of $154.25 implies an upside potential of 40.1% from current levels. These analyst ratings are likely to change following NVO’s results today.
