Astrazeneca (NYSE:AZN) Releases Earnings Results, Beats Expectations By $0.13 EPS

Astrazeneca (NYSE:AZN) announced its quarterly earnings results on Monday, July 27th. The company reported $2.63 EPS for the quarter, beating analysts’ consensus estimates of $2.50 by $0.13, Briefing.com reports. The company had revenue of $15.38 billion during the quarter, compared to analysts’ expectations of $15.44 billion. Astrazeneca had a return on equity of 31.45% and a net margin of 17.02%.Astrazeneca’s revenue was up 6.4% on a year-over-year basis. During the same period in the prior year, the business posted $2.17 EPS.

Here are the key takeaways from Astrazeneca’s conference call:

• First-half revenue rose 6% and core EPS increased 11%; excluding generic-pressured Farxiga and Brilinta, revenue grew 11%. AstraZeneca reiterated its full-year outlook for mid-to-high single-digit revenue growth and low-double-digit core EPS growth.
• The pipeline delivered six positive Phase III readouts and more than 20 major-market approvals, including launches of BAXFENDY and camizestrant. The company highlighted 25 planned Phase III readouts over the next 18 months and remains confident in its $80 billion 2030 revenue ambition.
• Oncology remained a major growth engine, with revenue up 15% in the first half; Enhertu, Imfinzi/Imjudo, Calquence, Truqap and Datroway all posted strong quarterly growth. Positive VOLGA bladder-cancer data and sonesitatug vedotin’s overall-survival benefit in CLDN18.2-positive gastric cancer could support additional long-term growth.
• BioPharmaceuticals revenue declined 5% as Farxiga, Brilinta and roxadustat faced loss-of-exclusivity and pricing pressure; Farxiga revenue fell 90% in the quarter after U.S. generic entry. The CARDIO-TTRansform trial for Wainua also failed to show a statistically significant benefit on its primary composite endpoint.
• AstraZeneca is accelerating investment in future growth, including Phase III programs for oral GLP-1 candidate elecoglipron and preparations for tozorakimab in COPD. Management said tozorakimab’s positive results increased its peak-sales expectation to more than $5 billion, while sonesitatug vedotin is now estimated at $3 billion–$5 billion.

Astrazeneca Stock Up 0.2%

Astrazeneca stock opened at $162.43 on Wednesday. The company has a 50 day moving average of $170.58 and a 200-day moving average of $184.42. The company has a quick ratio of 0.67, a current ratio of 0.89 and a debt-to-equity ratio of 0.47. Astrazeneca has a twelve month low of $145.79 and a twelve month high of $212.71. The stock has a market capitalization of $251.91 billion, a PE ratio of 24.28, a price-to-earnings-growth ratio of 1.27 and a beta of 0.25.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on AZN shares. The Goldman Sachs Group restated a “buy” rating on shares of Astrazeneca in a report on Wednesday, July 1st. Weiss Ratings cut shares of Astrazeneca from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, July 28th. Jefferies Financial Group reissued a “buy” rating on shares of Astrazeneca in a report on Friday, June 26th. CICC Research began coverage on shares of Astrazeneca in a research report on Sunday, August 23rd. They issued an “outperform” rating and a $198.00 price objective for the company. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a “sell” rating on shares of Astrazeneca in a research note on Tuesday, June 30th. Thirteen investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $206.67.

Institutional Investors Weigh In On Astrazeneca

Several institutional investors have recently added to or reduced their stakes in AZN. Triumph Capital Management bought a new position in Astrazeneca during the 3rd quarter worth about $25,000. JPL Wealth Management LLC bought a new stake in shares of Astrazeneca in the third quarter valued at about $35,000. Johnson Financial Group Inc. lifted its holdings in shares of Astrazeneca by 1,265.0% in the third quarter. Johnson Financial Group Inc. now owns 546 shares of the company’s stock valued at $42,000 after purchasing an additional 506 shares in the last quarter. Acumen Wealth Advisors LLC acquired a new position in shares of Astrazeneca during the fourth quarter worth about $47,000. Finally, Binnacle Investments Inc boosted its position in shares of Astrazeneca by 21.8% during the third quarter. Binnacle Investments Inc now owns 660 shares of the company’s stock worth $51,000 after buying an additional 118 shares during the period. 20.35% of the stock is owned by institutional investors.

Astrazeneca Company Profile

AstraZeneca plc is a global biopharmaceutical company headquartered in Cambridge, England. Formed through the 1999 merger of Sweden’s Astra AB and the UK’s Zeneca Group, the company researches, develops, manufactures and commercializes prescription medicines across a range of therapeutic areas. AstraZeneca positions itself as R&D-driven, investing in discovery science, clinical development and regulatory processes to bring new therapies to market.

The company’s commercial portfolio and late-stage pipeline emphasize oncology, cardiovascular, renal and metabolic (CVRM) diseases, and respiratory and immunology.