SNY Earnings: Sanofi Jumps on Healthy Q1 Performance

Sanofi (NASDAQ:SNY) shares jumped by over 5% in the early trading session today after the French healthcare major delivered a healthy performance for the first quarter.

SNY’s Q1 Numbers

During the quarter, Sanofi’s top line increased by 6.7% year-over-year to €10.46 billion, with EPS for the quarter standing at €1.78. The surge in SNY’s top line was propelled by higher Dupixent sales, which rose by 24.9% to €2.83 billion. The company is on track to garner €13 billion in Dupixent sales for the full year.

Additionally, revenue from Pharma product launches skyrocketed by 90.5% to €606 million, driven by the robust performances of Nexviazyme and Altuviio. Furthermore, Consumer Healthcare (CHC) revenue increased by 9%.

However, a 2.9% increase in selling, general, and administrative expenses (SG&A), coupled with 11.8% higher research and development (R&D) expenses, contributed to a 7.4% decline in the company’s bottom line.

Sanofi’s Future Trajectory

For the full year, Sanofi expects a low-single-digit decline in its EPS due to higher tax rates. Additionally, the company foresees a negative impact of 5.5% to 6.5% on its EPS from foreign currency exchange rate fluctuations.

Simultaneously, Sanofi is relying on its late-stage development pipeline to drive growth. It anticipates 12 Phase 3 data readouts over 2024-2025. Moreover, the regulatory decision for Dupixent in COPD (Chronic Obstructive Pulmonary Disease) on June 27 is a key event to monitor. If approved, Dupixent could become the first biologic treatment for COPD, addressing a progressive disease with limited treatment options.

Is SNY Stock a Good Buy?

Today’s price surge comes after a nearly 16% drop in Sanofi’s share price over the past year. Overall, the Street has a Moderate Buy consensus rating on the stock, alongside an average SNY price target of $63. However, analysts’ views on Sanofi stock could see a revision following today’s earnings report.

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