Novo Nordisk (NYSE:NVO) shares are trading at their highest level today after the Danish pharmaceutical major announced its results for the fourth quarter, with total sales increasing by 37% year-over-year to DKK 65.86 billion.
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During the quarter, NVO’s U.S. sales jumped by 62% to DKK 40 billion, and International sales rose by 8% to DKK 23.24 billion. These gains were primarily driven by a 62% jump in GLP-1 diabetes sales and a 114% growth in Obesity care sales.
Further, the company’s gross margin improved by about 200 basis points to 84.8%, and its operating margin improved by 510 basis points to 40.6% in Q4. Consequently, its net profit jumped to DKK 21.96 billion from DKK 13.59 billion in the year-ago period.
Additionally, Novo Nordisk has announced a new share repurchase program of up to DKK 20 billion for 2024. The company’s Board is also expected to propose a final dividend of DKK 6.40 per share at its annual meeting in March. For the full year, NVO sees sales growth in the range of 18% to 26%. Operating profit for the year is anticipated to increase by 21% to 29%.
What Is the Forecast for NVO Stock?
Overall, the Street has a Strong Buy consensus rating on Novo Nordisk. Following a nearly 57% rise in the company’s share price over the past year, the average NVO price target of $119.04 implies a modest 9.2% potential upside in the stock.
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