AstraZeneca, the pharmaceuticals major, has projected that its revenue and core earnings per share will grow by double-digit percentages in 2024. The company recently reported its fourth-quarter results, which showed revenue in line with expectations and core earnings per share slightly below.
For the three months ended December 31, the Anglo-Swedish group reported core EPS of $1.45, up from $1.38 for the same period the previous year. However, this fell short of the estimated $1.50 based on a company-compiled consensus. Total revenue for the quarter was $12.02 billion, slightly surpassing expectations of $12.01 billion.
Within the total revenue, product sales rose to $11.32 billion from $10.80 billion, buoyed by contributions from rare disease and oncology medicines. Despite this increase, the overall gross margin was impacted by profit-sharing agreements.
AstraZeneca’s net profit increased to $960 million from $901 million. Looking ahead to 2024, Chief Executive Pascal Soriot expressed optimism for continued growth driven by the adoption of their medicines globally.
The company forecasts a low double-digit to low-teens percentage rise in both total revenue and core EPS for the coming year. Collaboration revenue is expected to substantially increase in 2024 due to success-based milestones and anticipated transactions. However, other operating income is projected to decline substantially.
In 2023, AstraZeneca achieved total revenue of $45.81 billion, representing a 6% year-on-year growth at constant exchange rates. Core EPS reached $7.26, reflecting a 15% increase. The company had previously guided for mid-single digit total revenue percentage growth and low double-digit to low-teens core EPS percentage growth for the year.
To reward shareholders, the company’s board declared a second interim dividend of $1.97 per share, resulting in a total payout for the year of $2.90 per share.
