Sanofi (SNY) gained in pre-market trading after the company reported robust Q3 results. The French pharmaceutical and healthcare company reported adjusted earnings of €2.86 per share, up by 12.2% year-over-year. This was above the consensus estimates of €2.50 per share.
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SNY’s Portfolio Strength Drives Q3 Performance
Furthermore, the company’s sales grew by 15.3% year-over-year at constant exchange rates to €13.44 billion, surpassing analysts’ expectations of €13.2 billion. Sanofi’s strong third-quarter results were boosted by earlier prescriptions for flu shots and Beyfortus, a treatment designed to protect newborns from a common respiratory virus.
The company also saw a 67% increase in its newly launched medicines and volume-driven gains from Dupixent, Sanofi’s first biologic treatment approved for chronic obstructive pulmonary disease (COPD) across the EU, China, and the U.S.
SNY Raises FY24 Earnings Forecast
Looking ahead, Sanofi expects its adjusted earnings to grow in the “low single-digit percentage” range at constant exchange rates, excluding the sale of its Opella healthcare division. Earlier this month, Sanofi entered negotiations with Clayton Dubilier & Rice (CD&R), a U.S. private equity firm, to sell a 50% stake in Opella, its consumer health unit.
However, the company anticipates currency rate fluctuations to impact its adjusted earnings per share negatively, in the range of 5.5% to 6.5%.
Is SNY Stock a Good Buy?
Analysts remain cautiously optimistic about SNY stock, with a Moderate Buy consensus rating based on two Buys and one Holds. Year-to-date, SNY has increased by more than 6%, and the average SNY price target of $63.67 implies an upside potential of 22.3% from current levels. These analyst ratings are likely to change following SNY’s results today.
