AstraZeneca Backs 2020 Guidance, But Flags Uncertainty -- Earnings Review

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 [e-mail]

(END) Dow Jones Newswires

April 29, 2020 06:14 ET (10:14 GMT)

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