Astrazeneca (NYSE:AZN) Announces Quarterly Earnings Results

Astrazeneca (NYSE:AZN - Get Free Report) posted its earnings results on Monday, July 27th. The company reported $2.63 earnings per share for the quarter, beating the consensus estimate of $2.50 by $0.13, Briefing.com reports. The company had revenue of $15.38 billion for the quarter, compared to analyst estimates of $15.44 billion. Astrazeneca had a net margin of 17.02% and a return on equity of 31.45%. Astrazeneca's revenue was up 6.4% on a year-over-year basis. During the same period in the previous 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 Price Performance

AZN opened at $169.50 on Wednesday. The stock's 50-day moving average price is $171.92 and its 200 day moving average price is $185.20. Astrazeneca has a 12-month low of $145.79 and a 12-month high of $212.71. The firm has a market cap of $262.88 billion, a price-to-earnings ratio of 25.34, a PEG ratio of 1.44 and a beta of 0.26. The company has a current ratio of 0.89, a quick ratio of 0.67 and a debt-to-equity ratio of 0.47.

Institutional Trading of Astrazeneca

Several hedge funds have recently made changes to their positions in AZN. Morgan Stanley increased its stake in Astrazeneca by 3.2% during the 4th quarter. Morgan Stanley now owns 13,878,726 shares of the company's stock worth $2,435,716,000 after buying an additional 432,939 shares during the period. Citigroup Inc. raised its stake in shares of Astrazeneca by 65.3% in the fourth quarter. Citigroup Inc. now owns 6,154,760 shares of the company's stock valued at $1,080,160,000 after acquiring an additional 2,431,890 shares in the last quarter. Boston Partners raised its stake in shares of Astrazeneca by 5.2% in the third quarter. Boston Partners now owns 5,247,449 shares of the company's stock valued at $405,047,000 after acquiring an additional 257,525 shares in the last quarter. Ameriprise Financial Inc. boosted its holdings in Astrazeneca by 2.1% in the second quarter. Ameriprise Financial Inc. now owns 5,046,992 shares of the company's stock valued at $351,734,000 after purchasing an additional 104,625 shares during the period. Finally, Northern Trust Corp boosted its holdings in Astrazeneca by 2.8% in the fourth quarter. Northern Trust Corp now owns 4,756,686 shares of the company's stock valued at $834,798,000 after purchasing an additional 130,245 shares during the period. Institutional investors and hedge funds own 20.35% of the company's stock.

Analysts Set New Price Targets

A number of research analysts recently commented on AZN shares. Deutsche Bank Aktiengesellschaft reiterated a "sell" rating on shares of Astrazeneca in a report on Tuesday, June 30th. Bank of America restated a "buy" rating on shares of Astrazeneca in a research report on Wednesday, July 1st. The Goldman Sachs Group reaffirmed a "buy" rating on shares of Astrazeneca in a research note on Wednesday, July 1st. HSBC cut Astrazeneca from a "buy" rating to a "hold" rating in a report on Monday, July 13th. Finally, Jefferies Financial Group reissued a "buy" rating on shares of Astrazeneca in a research report on Friday, June 26th. Thirteen 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. According to data from MarketBeat, Astrazeneca currently has an average rating of "Moderate Buy" and an average target price of $206.67.

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.

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