AstraZeneca (NASDAQ:AZN) shares are on the rise today after the biopharmaceutical major reported robust numbers for the first quarter. Revenue jumped by 19% year-over-year to $12.68 billion, exceeding estimates by $880 million. Similarly, EPS of $2.06 outpaced expectations by a wide margin of $1.10. This was a 13% jump in the company’s bottom line.
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AZN’s Impressive Revenue Gains
This performance was driven by a 18% increase in product sales and a 59% surge in Alliance revenue from partnered products. Furthermore, AstraZeneca recorded double-digit growth in its Oncology, CVRM (Cardiovascular, Renal, and Metabolism), R&I (Respiratory and Immunology), and Rare Disease product lines. These gains were led by higher sales of key products, including Imfinzi, Tagrisso, Farxiga, Lokelma, and Fasenra.
AZN’s Future Expectations
For Fiscal year 2024, AstraZeneca anticipates that its top line will exhibit a low double-digit to low-teens percentage growth. Notably, the company expects a substantial increase in its collaboration revenue for the year, driven by success-based milestones and certain anticipated transactions. EPS for the year is expected to increase by a low double-digit to low-teens percentage.
Earlier this month, AstraZeneca increased its annual dividend by 7% to $3.10 per share. Importantly, the healthcare giant’s Investor Day is scheduled for May 21, a key event to keep an eye on.
Is AstraZeneca a Buy, Sell, or a Hold?
Today’s price gains further add to the nearly 12% rise in AstraZeneca’s share price over the past six months. Overall, the Street has a Strong Buy consensus rating on the stock, alongside an average AZN price target of $80.36. However, analysts’ views on AstraZeneca could see changes following today’s earnings report.
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