Shares in drugs giant AstraZeneca (AZN) looked perkier today as it reported a rise in sales and eased investor fears over the impact of potential Chinese import fines.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
AZN stock rose nearly 3% in premarket trading as it said fourth-quarter sales had climbed 24% to $14.9 billion beating estimates of $14.2 billion. It pointed to soaring demand for oncology, heart disease and diabetes drugs. Earnings per share came in at $2.09, up 44% on this time last year, and again beating forecasts of $2.07. AstraZeneca said it expects growth to continue with revenues climbing by a high single-digit percentage in 2025 and EPS to increase by a low double-digit percentage.
Dividend Hike This Year and Next
AZN also provided a fillip to investors by revealing a total annual dividend for 2024 of $3.10 per share, an increase of 7%. It is set to rise further in 2025.
AZN said sales had been driven by demand from the US and Europe but in China they dropped by 1%. That’s important as China is a key international market for AZN accounting for around 12% of total annual group revenue. AZN blamed the Chinese chill on a mild winter reducing the need for drugs to fight colds and flus as well as budget constraints in Chinese hospitals.
Ongoing Chinese Probe Causes Concern
Elsewhere in China, AZN said it could be hit by a fine of up to $4.5 million for unpaid taxes related to the import of two cancer therapies believed to be Imfinzi and Imjudo. This is less than investors had first feared. However, some analysts remain concerned about an ongoing probe by the Government into AZN’s executives in China which has included its chief Leon Wang being detained by the authorities. He is now on extended leave.
“One major cloud in the company’s outlook is various probes in China – with little clarity yet over what is really going on or the scope of the investigations,” said Garry White, Chief Investment Commentator at Charles Stanley.
Is AZN a Good Stock to Buy?
On TipRanks, AZN has a Strong Buy consensus based on 5 Buy ratings. Its highest target price is $91.70. AZN stock’s consensus price target is $88.68 implying an 25.02% upside. However, price targets are liable to change in the wake of the earnings release.
