Shares of AstraZeneca saw a significant increase in early trade, rising as much as 4.2%, following the company’s announcement that it has raised its full-year guidance for core earnings per share and total revenue (excluding Covid-19 medicines) after surpassing expectations for core EPS in the third quarter.
Strong Growth in Core Earnings per Share
AstraZeneca, the Anglo-Swedish pharmaceutical giant, revealed that it now anticipates a low double-digit percentage increase in core earnings per share, compared to its previous guidance of a high single-digit to low double-digit percentage increase. For the third quarter, core earnings per share rose to $1.73, showing a 9% increase at constant-exchange rates.
Impressive Revenue Growth
The company also reported a rise in revenue, reaching $11.49 billion (up 6% at constant-exchange rates) in the third quarter, compared to $10.98 billion in the same period last year. The consensus revenue estimate was $11.55 billion.
Upward Revision in Total Revenue Projection
Furthermore, AstraZeneca revised its projection for total revenue (excluding Covid-19 medicines), now expecting a low-teens percentage growth at constant-exchange rates. This is an improvement from its previous expectation of a low double-digit percentage increase. The company projects a mid single-digit percentage increase in total revenue overall, compared to its previous guidance of low-to-mid single-digit growth.
Net Profit and Taxation Analysis
While net profit attributable to shareholders for the quarter was $1.37 billion, falling short of the FactSet consensus of $1.58 billion based on four analysts forecasts, it is important to note that the company incurred a tax charge of $274 million during this period, compared to a credit of $720 million. However, the net profit for the first nine months of the year increased significantly to $4.91 billion from $701 million, and core earnings per share rose by 17% to $5.80.
AstraZeneca continues to perform strongly, demonstrating growth in core earnings and revenue for the third quarter. The company’s optimistic outlook for the full year, highlighted by the upward revision of its guidance, indicates positive momentum moving forward.
