Roche Holding, the Swiss pharmaceutical giant, is set to announce its first half results on Thursday. Here are the key details you need to know:
Sales Forecast
Consensus estimations by four analysts suggest that Roche is expected to report sales of 30.15 billion Swiss francs ($34.90 billion) for the first half of the year. In comparison, sales for the same period last year amounted to CHF32.295 billion.
Core EPS Forecast
Analysts predict that Roche’s core earnings per share for the first half will amount to CHF10.34. This estimation is based on consensus data provided by FactSet and derived from five estimates. In the previous year, the company reported core EPS of CHF11.76 for the same period.
What to Watch For
Guidance
Roche has provided guidance indicating that it expects sales to decline at a low single-digit percentage rate for the year, considering constant exchange rates. Similarly, core EPS is expected to follow a similar trajectory. Analysts at Jefferies believe that an upgrade to at least a flat performance in guidance seems reasonable, although it may occur in the third quarter.
Currency Effects
Roche has highlighted that it anticipates its 2023 results to be impacted by currency fluctuations. The company stated in its first-quarter results that foreign-exchange effects would reduce its full-year sales growth by four percentage points and its core EPS growth by five percentage points, assuming rates as of March 31 remain stable until the end of 2023. Analysts from JPMorgan warn that the probable significant increase in currency headwinds this year could lead to downgrades in consensus forecasts.
Research and Development
Ahead of an investor event centered around Roche’s pharma operations on September 11, investors will be keen to learn about the company’s efforts to enhance its research and development activities. Jefferies analysts anticipate significant interest in this subject.
