Pharma giant AstraZeneca (AZN) is scheduled to announce its third-quarter results on Tuesday, November 12. Wall Street expects the company to report Q3 earnings per share (EPS) of $1.02, reflecting a 17.2% year-over-year growth. Revenue is expected to increase by more than 13% to $13 billion. Interestingly, the company has exceeded analysts’ earnings estimates in nine of the past ten quarters.
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Analysts’ estimates reflect optimism about AstraZeneca’s performance following solid results in the first half of 2024. Except for vaccines, the company reported double-digit growth across all the key therapeutic areas. Further, AZN raised its full-year guidance to reflect the strength in H1 2024 results. Based on the growth potential of its approved medicines and those in the late-stage pipeline, AstraZeneca is targeting $80 billion in revenue by 2030.
Sentiment Ahead of AZN’s Q3 Results
AstraZeneca stock recently took a major hit on news of a probe into accusations of insurance fraud in China. Allegedly, some of the sales personnel manipulated patients’ test results to boost drug sales.
Bank of America analyst Sachin Jain thinks that the pullback in the stock due to concerns over the ongoing insurance fraud investigation seems “overdone.” The analyst noted that while China represents 13% of AZN’s revenue, the potential impact from the fraud case is restricted to the oncology business in the country, which represents only 5% of the top line. Jain reiterated a Buy rating and believes that AZN stock’s valuation looks attractive following the recent sell-off.
Likewise, BMO Capital analyst Etzer Darout also thinks that the recent pullback in the stock due to the China probe looks overdone. Darout reaffirmed a Buy rating on AZN stock with a price target of $89.
Options Traders Anticipate a Notable Move
TipRanks’ Options tool offers a quick way to gauge what options traders anticipate from the stock following its earnings report. The expected earnings move is calculated using the at-the-money straddle of the options set to expire closest to the announcement. While this may sound complex, the tool handles the calculations for you.
Currently, it indicates that options traders are predicting about a 5.4% swing in either direction in AZN stock.
Is AZN Stock a Buy, Sell, or Hold?
With five Buys versus one Hold recommendation, AZN stock scores a Strong Buy consensus rating on TipRanks. The average AZN stock price target of $94 implies about 46% upside potential. Shares are down 4.3% year-to-date.
