We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AstraZeneca’s (AZN - Free Report) first-quarter 2020 earnings and sales beat the Zacks Consensus Estimate. The company maintained its previously issued revenue and earnings guidance for 2020.
Shares of AstraZeneca were up 1% in pre-market trading on Apr 29, following the better-than-expected first-quarter results. This year so far, the company’s shares have risen 2.2% against an increase of 0.9% for the industry
Earnings & Sales Beat
First-quarter 2020 core earnings of 53 cents per American depositary share beat the Zacks Consensus Estimate of 47 cents. Core earnings per share of $1.05 rose 21% year over year at constant exchange rates (“CER”) due to higher revenues.
Total revenues were up 16% (17% at CER) to $6.35 billion in the reported quarter, driven by higher product sales. Revenues also beat the Zacks Consensus Estimate of $5.81 billion.
All growth rates mentioned below are on a year-over-year basis and at CER.
Product Sales Rise
Product sales rose 17% at CER to $6.31 billion driven by higher demand for its newer medicines and double-digit growth in asthma medicine, Symbicort’s sales. Sales of some medicines in the quarter benefited from stockpiling by distributors, prescription-lengthening and improved treatment-regimen adherence by patients as a result of the coronavirus pandemic. COVID-19 related benefits pulled up AstraZeneca’s sales by a low-to-mid single-digit percentage, which the company mentioned will reverse in the future quarters of 2020.
Collaboration revenues were $43 million, up 70% year over year.
Among AstraZeneca’s various therapeutic areas, Oncology product sales were up 34%. In BioPharmaceuticals, New CVRM product sales were up 8% while Respiratory & Immunology rose 22%. However, other medicines declined 6%.
In Oncology, Lynparza sales rose 69% year over year to $397 million on the back of expanded use in ovarian and breast cancer. AstraZeneca markets Lynparza in partnership with Merck (MRK - Free Report) .
Tagrisso recorded sales of $982 million, up 58% year over year driven by continued demand growth in the second-line setting and strong uptake in the first-line setting.
Imfinzi generated sales of $462 million in the quarter, up 57% year over year mainly driven by strong demand in lung cancer patients.
Calquence generated sales of $88 million in the quarter compared to $1 million in the year-ago quarter which was majorly driven by the CLL indication, launched toward the end of last year.
Iressa sales were down 41% to $77 million. Sales of older cancer drugs, Faslodex and Casodex declined while Arimidex and Zoladex increased.
In CVRM, Brilinta/Brilique sales were $408 million in the reported quarter, up 19% year over year driven by continued patient uptake in acute coronary syndrome and high-risk post-myocardial infarction indications. Sales also benefited from short-term inventory increases due to COVID-19.
Farxiga recorded sales of $405 million in the quarter, up 19% year over year driven by growth in emerging markets and Europe. U.S. sales declined 14% due to increased competition and unfavorable mix of sales and managed markets.
Crestor sales declined 9% to $301 million.
Bydureon sales declined 29% to $100 million. Onglyza sales declined 6% to $141 million. Seloken sales declined 18% to $177 million. Byetta sales were down 31% to $20 million. Atacand sales were up 36% to $66 million.
In Respiratory & Immunology, Symbicort sales were up 36% in the quarter to $790 million due to the launch of an authorized generic version of the LABA/LAMA inhaler by AstraZeneca’s partner Prasco in the United States. U.S. sales grew 76% in the quarter. Emerging Markets sales increased 20% in the quarter driven by strong performances in China and the Middle East & Africa. In Europe, sales increased 10%.
Pulmicort sales were flat at $380 million as higher sales in Europe made up for weaker performance in the United States and China. Sales were stable in Emerging Markets.
Fasenra recorded sales of $199 million in the quarter, up 55% year over year driven by higher sales in the United States, Japan and Europe.
Bevespi, a LAMA/LABA in a pressurized metered dose inhaler, recorded sales of $12 million in the quarter, same as in the previous quarter, amid slower-than-anticipated growth in LAMA/LABA class.
Breztri, which was approved in Japan in June 2019, recorded sales of $4 million in the quarter. Daliresp/Daxas grew 12% to $53 million in the quarter.
In Other Medicines, Nexium sales declined 6% to $338 million. Synagis rose 61% to $85 million.
Regional Performance
In the United States, product sales were up 16% to $2.09 billion. Sales in European markets grew 25% in the quarter to $1.20 billion. Revenues from Emerging Markets were up 16% to $2.27 billion. In Emerging Markets, sales in China rose 17% to $1.42 billion, while in ex-China markets, sales rose 15% to $857 million. In Established ROW market (comprising Japan, Canada and other markets), sales were up 13% to $786 million.
Profit Discussion
AstraZeneca’s core gross margin declined two percentage points (at CER) to 78%. Core selling, general and administrative (SG&A) expenses rose 7% to $2.18 billion.
Core research and development (R&D) expenses rose 9% to $1.34 billion. Core operating profit rose 16% to $1.85 billion in the quarter. Core operating margin was stable at 29.2% in the quarter.
Coronavirus Related Research Efforts
AstraZeneca initiated a late-stage study to evaluate its SGLT2 inhibitor, Farxiga as a treatment in patients hospitalized with COVID-19 who have pre-existing health conditions like diabetes or chronic kidney disease and are at risk of developing serious complications, such as organ failure. The study is open for enrolment in the United States and other European countries and is being conducted by AstraZeneca and Saint Luke’s Mid America Heart Institute.
AstraZeneca also plans to initiate a study (CALAVI) to evaluate the effect of Calquence on the exaggerated immune response (cytokine storm) of patients hospitalized with COVID-19 infection.
Meanwhile, the company donated nine million face masks to support global healthcare workers. The company is also working to identify novel SARS-CoV-2-neutralising monoclonal antibodies that can be developed into potential treatments for COVID-19.
2020 View
AstraZeneca retained its guidance for total revenues and core EPS for 2020. Among the drugmakers that have reported so far, Sanofi (SNY - Free Report) and Pfizer (PFE - Free Report) also maintained their financial outlook for the year. AstraZeneca expects total revenues to grow in a high single-digit to a low double-digit range. The company expects core EPS guidance to increase in a mid- to high-teens percentage. Currency changes are expected to have a low single-digit adverse impact on sales and core EPS in 2020.
Despite the coronavirus outbreak, the company did not see any material disruptions in its supply chain. Its manufacturing facilities in China came back on line within a few weeks of the outbreak. However ,AstraZeneca warned that the economic consequences of the pandemic are uncertain. AstraZeneca said that the guidance assumes that the global impact of the COVID-19 pandemic will last for several more months. It plans to provide an updated guidance on its first-half 2020 earnings call, after gaining an insight on the actual impact of the coronavirus outbreak.
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
AstraZeneca (AZN) Q1 Earnings & Sales Beat, Increase Y/Y
AstraZeneca’s (AZN - Free Report) first-quarter 2020 earnings and sales beat the Zacks Consensus Estimate. The company maintained its previously issued revenue and earnings guidance for 2020.
Shares of AstraZeneca were up 1% in pre-market trading on Apr 29, following the better-than-expected first-quarter results. This year so far, the company’s shares have risen 2.2% against an increase of 0.9% for the industry
Earnings & Sales Beat
First-quarter 2020 core earnings of 53 cents per American depositary share beat the Zacks Consensus Estimate of 47 cents. Core earnings per share of $1.05 rose 21% year over year at constant exchange rates (“CER”) due to higher revenues.
Total revenues were up 16% (17% at CER) to $6.35 billion in the reported quarter, driven by higher product sales. Revenues also beat the Zacks Consensus Estimate of $5.81 billion.
All growth rates mentioned below are on a year-over-year basis and at CER.
Product Sales Rise
Product sales rose 17% at CER to $6.31 billion driven by higher demand for its newer medicines and double-digit growth in asthma medicine, Symbicort’s sales. Sales of some medicines in the quarter benefited from stockpiling by distributors, prescription-lengthening and improved treatment-regimen adherence by patients as a result of the coronavirus pandemic. COVID-19 related benefits pulled up AstraZeneca’s sales by a low-to-mid single-digit percentage, which the company mentioned will reverse in the future quarters of 2020.
Collaboration revenues were $43 million, up 70% year over year.
Among AstraZeneca’s various therapeutic areas, Oncology product sales were up 34%. In BioPharmaceuticals, New CVRM product sales were up 8% while Respiratory & Immunology rose 22%. However, other medicines declined 6%.
In Oncology, Lynparza sales rose 69% year over year to $397 million on the back of expanded use in ovarian and breast cancer. AstraZeneca markets Lynparza in partnership with Merck (MRK - Free Report) .
Tagrisso recorded sales of $982 million, up 58% year over year driven by continued demand growth in the second-line setting and strong uptake in the first-line setting.
Imfinzi generated sales of $462 million in the quarter, up 57% year over year mainly driven by strong demand in lung cancer patients.
Calquence generated sales of $88 million in the quarter compared to $1 million in the year-ago quarter which was majorly driven by the CLL indication, launched toward the end of last year.
Iressa sales were down 41% to $77 million. Sales of older cancer drugs, Faslodex and Casodex declined while Arimidex and Zoladex increased.
In CVRM, Brilinta/Brilique sales were $408 million in the reported quarter, up 19% year over year driven by continued patient uptake in acute coronary syndrome and high-risk post-myocardial infarction indications. Sales also benefited from short-term inventory increases due to COVID-19.
Farxiga recorded sales of $405 million in the quarter, up 19% year over year driven by growth in emerging markets and Europe. U.S. sales declined 14% due to increased competition and unfavorable mix of sales and managed markets.
Crestor sales declined 9% to $301 million.
Bydureon sales declined 29% to $100 million. Onglyza sales declined 6% to $141 million. Seloken sales declined 18% to $177 million. Byetta sales were down 31% to $20 million. Atacand sales were up 36% to $66 million.
In Respiratory & Immunology, Symbicort sales were up 36% in the quarter to $790 million due to the launch of an authorized generic version of the LABA/LAMA inhaler by AstraZeneca’s partner Prasco in the United States. U.S. sales grew 76% in the quarter. Emerging Markets sales increased 20% in the quarter driven by strong performances in China and the Middle East & Africa. In Europe, sales increased 10%.
Pulmicort sales were flat at $380 million as higher sales in Europe made up for weaker performance in the United States and China. Sales were stable in Emerging Markets.
Fasenra recorded sales of $199 million in the quarter, up 55% year over year driven by higher sales in the United States, Japan and Europe.
Bevespi, a LAMA/LABA in a pressurized metered dose inhaler, recorded sales of $12 million in the quarter, same as in the previous quarter, amid slower-than-anticipated growth in LAMA/LABA class.
Breztri, which was approved in Japan in June 2019, recorded sales of $4 million in the quarter. Daliresp/Daxas grew 12% to $53 million in the quarter.
In Other Medicines, Nexium sales declined 6% to $338 million. Synagis rose 61% to $85 million.
Regional Performance
In the United States, product sales were up 16% to $2.09 billion. Sales in European markets grew 25% in the quarter to $1.20 billion. Revenues from Emerging Markets were up 16% to $2.27 billion. In Emerging Markets, sales in China rose 17% to $1.42 billion, while in ex-China markets, sales rose 15% to $857 million. In Established ROW market (comprising Japan, Canada and other markets), sales were up 13% to $786 million.
Profit Discussion
AstraZeneca’s core gross margin declined two percentage points (at CER) to 78%. Core selling, general and administrative (SG&A) expenses rose 7% to $2.18 billion.
Core research and development (R&D) expenses rose 9% to $1.34 billion. Core operating profit rose 16% to $1.85 billion in the quarter. Core operating margin was stable at 29.2% in the quarter.
Coronavirus Related Research Efforts
AstraZeneca initiated a late-stage study to evaluate its SGLT2 inhibitor, Farxiga as a treatment in patients hospitalized with COVID-19 who have pre-existing health conditions like diabetes or chronic kidney disease and are at risk of developing serious complications, such as organ failure. The study is open for enrolment in the United States and other European countries and is being conducted by AstraZeneca and Saint Luke’s Mid America Heart Institute.
AstraZeneca also plans to initiate a study (CALAVI) to evaluate the effect of Calquence on the exaggerated immune response (cytokine storm) of patients hospitalized with COVID-19 infection.
Meanwhile, the company donated nine million face masks to support global healthcare workers. The company is also working to identify novel SARS-CoV-2-neutralising monoclonal antibodies that can be developed into potential treatments for COVID-19.
2020 View
AstraZeneca retained its guidance for total revenues and core EPS for 2020. Among the drugmakers that have reported so far, Sanofi (SNY - Free Report) and Pfizer (PFE - Free Report) also maintained their financial outlook for the year. AstraZeneca expects total revenues to grow in a high single-digit to a low double-digit range. The company expects core EPS guidance to increase in a mid- to high-teens percentage. Currency changes are expected to have a low single-digit adverse impact on sales and core EPS in 2020.
Despite the coronavirus outbreak, the company did not see any material disruptions in its supply chain. Its manufacturing facilities in China came back on line within a few weeks of the outbreak. However ,AstraZeneca warned that the economic consequences of the pandemic are uncertain. AstraZeneca said that the guidance assumes that the global impact of the COVID-19 pandemic will last for several more months. It plans to provide an updated guidance on its first-half 2020 earnings call, after gaining an insight on the actual impact of the coronavirus outbreak.
Zacks Rank & Stocks to Consider
AstraZeneca has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AstraZeneca PLC Price, Consensus and EPS Surprise
AstraZeneca PLC price-consensus-eps-surprise-chart | AstraZeneca PLC Quote
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>