Novartis AG (ADR) (NYSE: NVS) stock opened positive this morning and rose over 1.5% on January 25th, 2017 (as of 10:00 AM EST; Source: Google finance).
The group reported a decent FY16 performance, with revenues rising by 20%. Despite volatile conditions, Innovative Medicines and Sandoz Divisions performance was good. Since they were not able turnaround Alcon Division, the group expects to spin off their Alcon eye care business before the division’s expected the return to growth in 2018. The group took this decision given the division’s flat fourth-quarter sales and an operating loss of $120 million.
On the other hand, the group’s growth products comprising Gilenya, Cosentyx and several cancer treatments contributed USD 17.1 billion, or 35% of net sales. Cosentyx achieved a blockbuster status in 2016, while Entries to sales is forecasted to pick up this year.
The group intends to buy back up to $5 billion worth of shares in the coming twelve months while proposed a dividend of CHF 2.75 per share which is a rise of 2%.
For 2017, Novartis expects their net sales to be broadly in line with FY16 on the back of rising generic competition. Moreover, the Core operating income would be in line with low single digit decline as compared to the last year. NVS stock fell over 14.8% in the last six months.
Boeing highlights
Boeing Co (NYSE: BA) rallied over 2.5% this morning (on January 25th, 2017-as of 10:00 AM EST; Source: Google finance). This increase in the stock is due to the fact that Boeing reported a profit driven by their 787 Dreamliner, post witnessing losses since the last few years. For Fourth-Quarter 2016, the group reported an Operating cash flow of $2.8 billion and a GAAP EPS of $2.59.
The group generated a Revenue of $94.6 billion for the fiscal year of 2016, driven by the 926 commercial and defense aircraft deliveries and services growth. Accordingly, BA reported an operating cash flow of $10.5 billion and bought back 55.1 million shares for $7.0 billion.
BA Backlog is at $473 billion having greater than 5,700 commercial airplane orders
For 2017, BA expects a better Operating cash flow of over $10.75 billion against FY16. BA rallied over 18.4% in the last three months (as of 10:11 AM EST; Source: Google finance).