AstraZeneca Backs 2020 Guidance, But Flags Uncertainty -- Earnings Review
April 29 2020 - 6:29AM
Dow Jones News
By Adria Calatayud
AstraZeneca PLC reported results for the first quarter on
Wednesday. Here's what you need to know:
SALES: The FTSE 100-listed drugmaker generated sales of $6.35
billion for the first quarter, up 16% on year and up 17% at
constant-exchange rates. This was ahead of expectations of $5.91
billion, according to a consensus based on estimates by 12 analysts
polled by FactSet. The company said medicine stockpiling boosted
first-quarter sales, but expects this effect to reverse in the
coming months.
CORE EARNINGS PER SHARE: AstraZeneca's first-quarter core
earnings per share--a measure that strips out one-time items--rose
21% on year to $1.05 beating expectations of $0.90, according to a
FactSet-provided consensus based on 10 analysts' estimates.
WHAT WE WATCHED:
-GUIDANCE: AstraZeneca reiterated its previous full-year
guidance, but cautioned that the effect of the new coronavirus on
its operations is highly uncertain and will depend on the duration,
extent and severity of the pandemic. The company expects total
revenue to increase by between a high single-digit and a low
double-digit percentage, and core EPS to increase by a mid- to
high-teens percentage, all at constant-currency rates. Analysts at
investment group Shore Capital said the coronavirus impact seems
manageable for the company, while UBS analysts said consensus
forecasts are unlikely to change.
-CORONAVIRUS: The company said it has mobilized research efforts
to find new ways to target the new coronavirus, formally called
SARS-CoV-2. AstraZeneca is identifying new SARS-CoV-2-neutralizing
monoclonal antibodies that can be used for treatment, as well as a
prophylaxis against viral infection. It is also evaluating the use
of its existing drugs Calquence, a lymphoma treatment, and Farxiga,
a diabetes drug, to potentially treat Covid-19 patients, the
company said.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
April 29, 2020 06:14 ET (10:14 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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