Analysts’ estimates of AstraZeneca’s profitability failed to take into account the impact on its margins of the not-for-profit COVID-19 vaccine and the costs of the Alexion acquisition.
AstraZeneca PLCdescribed its third-quarter financial results as being bolstered by the acquisition of Alexion Pharmaceuticals Inc. To paraphrase Spiderman’s uncle, with great acquisitions come great costs. Partly as a result of that transaction, total revenues increased by 50% on the same quarter of 2020, and by 20% on the second quarter of 2021. Revenues beat analysts’ consensus estimates by 3%, but core (non-GAAP) earnings per share (EPS) missed analysts’ estimates by nearly 13%. AstraZeneca’s announcement and conference call focused on the year to date, rather than the most recent quarter. This was probably because “the costs associated with the vaccine and the integration of Alexion” pushed AstraZeneca into a quarterly GAAP EPS loss. Investors reacted with an almost 7% stock price drop compared with the NYSE Arca Pharmaceutical Index’s 0.4% fall
Read the full article – start your free trial today!
Join thousands of industry professionals who rely on Scrip for daily insights
- Start your 7-day free trial
- Explore trusted news, analysis, and insights
- Access comprehensive global coverage
- Enjoy instant access – no credit card required
Already a subscriber?