Sanofi's Earnings Outlook

Sanofi SNY is gearing up to announce its quarterly earnings on Friday, 2024-10-25. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Sanofi will report an earnings per share (EPS) of $1.39.

Anticipation surrounds Sanofi's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Historical Earnings Performance

In the previous earnings release, the company beat EPS by $0.07, leading to a 1.32% drop in the share price the following trading session.

Here's a look at Sanofi's past performance and the resulting price change:

Market Performance of Sanofi's Stock

Shares of Sanofi were trading at $52.89 as of October 23. Over the last 52-week period, shares are up 23.12%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Take on Sanofi

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Sanofi.

Analysts have provided Sanofi with 1 ratings, resulting in a consensus rating of Buy. The average one-year price target stands at $60.0, suggesting a potential 13.44% upside.

Analyzing Ratings Among Peers

The below comparison of the analyst ratings and average 1-year price targets of Pfizer, Zoetis and AstraZeneca, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• For Pfizer, analysts project an Outperform trajectory, with an average 1-year price target of $39.0, indicating a potential 26.26% downside.
• Zoetis is maintaining an Buy status according to analysts, with an average 1-year price target of $212.5, indicating a potential 301.78% upside.
• The consensus outlook from analysts is an Buy trajectory for AstraZeneca, with an average 1-year price target of $95.0, indicating a potential 79.62% upside.

Comprehensive Peer Analysis Summary

The peer analysis summary outlines pivotal metrics for Pfizer, Zoetis and AstraZeneca, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Sanofi ranks in the middle for Consensus rating among its peers. It is at the bottom for Revenue Growth. Sanofi is at the top for Gross Profit. Sanofi is at the bottom for Return on Equity.

About Sanofi

Sanofi develops and markets drugs with a concentration in oncology, immunology, cardiovascular disease, diabetes, over-the-counter treatments and vaccines. However, the company's decision in late 2019 to pull back from the cardio-metabolic area will likely reduce the firm's footprint in this large therapeutic area. The company offers a diverse array of drugs with its highest revenue generator, Dupixent, representing just over 20% of total sales, but profits are shared with Regeneron. Just over 40% of total revenue comes from the United States and 25% from Europe. Emerging markets represent the majority of the remainder of revenue.

Sanofi: Delving into Financials

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Sanofi displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 6.53%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: Sanofi's net margin excels beyond industry benchmarks, reaching 9.78%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Sanofi's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 1.53%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Sanofi's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.86%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Sanofi's debt-to-equity ratio is below the industry average. With a ratio of 0.33, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Sanofi visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.