Net profit doubled, profit margin declined. This is exactly the result of cutting prices to boost sales. For example, if the price is cut by 30% and sales volume can increase by 50%, it basically has no impact on performance. The financial report also confirms this view. Long-term bullish on 60, view unchanged.$Novo Nordisk AS(NVO.US)
$Novo Nordisk AS(NVO.US)
I highly suspect that in the last earnings report, management deliberately lowered expectations.
If the expectation was -10% and they achieved +10% at year-end, then the CEO would be a hero.
If the expectation was +5% and they achieved +10% at year-end, then the CEO would be an ordinary, by-the-book person.
Here are the bullish reasons:
1. Earlier peer performance far exceeded expectations, with Eli Lilly even raising guidance, indicating drug sales are not bad.
2. Announced layoffs of 8000 people at the end of 2025, but hired 2000 people in Feb-Apr 2026.
3. Spent 3 million USD on a Super Bowl advertisement.
4. Public prescription data shows oral drug prescriptions far ahead of Eli Lilly, also greatly exceeding analyst expectations.
5. Launched a massive share repurchase plan.
If management was not optimistic about future performance, shouldn't they be cutting costs and tightening the belt? Instead, they are aggressively marketing, hiring, and expanding, with no signs of a performance decline at all.
Everything will be revealed in the earnings report on May 6th. Personally bullish, haven't sold a single share, including options. If the report causes a drop, will continue to add to the position.
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
