AstraZeneca PLC (Nasdaq: AZN) reported better-than-anticipated fiscal 2022 third-quarter earnings and revenues. The company reaffirmed its revenue view and also lifted its FY 2022 profit outlook. The company’s performance was aided by robust sales of its cancer drugs. The stock closed at $65.09, up 6.62% or $4.04 from its prior close.
The Cambridge, United Kingdom-based AstraZeneca reported third-quarter revenues of $10.98 billion, up 11% from $9.87 billion in the similar quarter last year.
For the third quarter, which ended September 30, 2022, the company reported a profit (attributable to Owners of the Parent) of $1.64 billion, compared with a net loss of $1.65 billion. On a per-share basis, Q3 2022 earnings were $1.05, compared with a net loss of $1.10 per share in Q3 2021.
Excluding charges, core earnings for 3Q22 were $1.67 per share. Analysts surveyed by Thomson Reuters had anticipated the company to post earnings of $1.52 per share on revenues of $10.86 billion. The impressive quarterly results were aided by the $39 billion acquisition of Alexion in July 2021.
Commenting on the results, Pascal Soriot, CEO of AstraZeneca, stated “AstraZeneca continues to see the benefit of our sustained investment in R&D, with 19 major regulatory approvals since our last earnings call.”
Segment wise,
- Product revenues rose by 9% y-o-y to $10.59 billion.
- Collaboration revenues were $392 million, compared with $125 million last year.
Profit before tax for the latest quarter was $922 million, compared with a loss of $2 billion in the similar quarter of fiscal 2021.
Revenues based on disease classification:
Oncology revenues surged 20% y-o-y to $4.039 billion.
- CVRM (cardiovascular disease, diabetes, non-alcoholic steatohepatitis, and chronic kidney disease) revenues were $2.351 billion, an increase of 11% from last year. Specifically, the diabetes drug Farxiga attained revenues of $1.103 billion (third successive blockbuster quarter).
- R&I (Respiratory and Immunology) revenues inched up 1%y-o-y to $1.499 billion.
- V&I (Vaccines and Immune Therapies) revenues fell by 29% y-o-y to $878 million. Notably, AstraZeneca’s covid-19 vaccine Vaxzevria plunged 83% to $173 million, from $1.05 billion in 3Q21. However, the company’s latest Covid drug Evusheld, prescribed for seriously ill patients, posted revenue of $537 million.
Looking forward, AstraZeneca now forecasts FY 2022 core earnings per share to rise by the high twenties to low thirties percentage, reflecting an upward revision from the earlier anticipated growth range of mid-to-high twenties percentage.
Additionally, the company continues to project aggregate revenue to rise by a low-twenties percentage.
The earnings beat and upward revision of the FY 2022 earnings outlook are expected to keep the share price of AstraZeneca slightly bullish in the short term.
The historical price chart indicates that the stock of AstraZeneca is rising after testing the support at 54. The next resistance level is anticipated only near 68. Additionally, the stock is trading above its 50-day moving average while the stochastic indicator is ascending toward the bullish zone. Therefore, we anticipate the stock of AstraZeneca to remain in an uptrend in the days ahead.
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