Earnings and projections from Novartis fail to meet expectations.

Title: Novartis Shares Drop 5% After Disappointing Fourth-Quarter Earnings Report

Introduction:
On January 27, 2022, pharmaceutical giant Novartis reported its fourth-quarter earnings and sales, causing its shares to drop by approximately 5%. The company’s results fell short of consensus expectations, and its guidance for the upcoming year was deemed unsatisfactory by analysts. Let’s take a closer look at what led to this decline in Novartis’ stock value.

Earnings and Sales Miss Expectations:
Novartis reported a net income of $2.1 billion for the fourth quarter, which was lower than the $2.3 billion expected by analysts. The company’s sales also fell short of expectations, coming in at $12.8 billion instead of the projected $13.1 billion. This was mainly due to a decline in sales for some of Novartis’ key drugs, including its blockbuster psoriasis treatment, Cosentyx.

Guidance Falls Short:
In addition to the disappointing earnings and sales, Novartis also issued guidance for the upcoming year that did not meet analysts’ hopes. The company expects its sales to grow by only 5% to 6% in 2022, which is below the 6.5% growth predicted by analysts. Novartis also stated that its operating  

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