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Key Takeaways
- AstraZeneca’s second-quarter earnings beat expectations Thursday, and the drugmaker also lifted its guidance.
- Like its COVID-19 vaccine manufacturing colleagues Pfizer and Johnson & Johnson, AstraZeneca’s revenue from vaccines fell year-over-year.
- During the quarter, the company said at its annual investor day that it believes the drugs in its development pipeline can boost revenue to $80 billion annually by 2030, compared to $45 billion in 2023.
AstraZeneca ( AZN ) posted better-than-expected results for the second quarter and lifted its full-year guidance Thursday as revenue grew in nearly all of its product categories compared to the same time last year.
The pharmaceutical giant reported $12.94 billion in revenue for the quarter, just over 13% higher than last year’s $11.42 billion and above the $12.54 billion analysts had projected, according to estimates compiled by Visible Alpha.
Net income also increased more than analysts expected, to $1.93 billion from $1.82 billion last year. Analysts had expected a smaller increase to $1.84 billion.
Guidance Lifted, Revenue Rises in Most Areas Aside From Vaccines
Sales grew for all of AstraZeneca’s therapy areas like oncology and cardiovascular, renal, and metabolism (CVRM), aside from vaccines and “other medicines,” which fell by 57% and 11%, respectively. AstraZeneca and other pharmaceutical companies like Pfizer ( PFE ) and Johnson & Johnson ( JNJ ) have reported lower vaccine revenue in recent quarters as demand has faded for the COVID-19 vaccine, which boosted revenue during the pandemic.
The company also updated its guidance for the full year on the back of the strong drug sales, expecting revenue and adjusted earnings per share (EPS) to each rise by a mid-teens percentage, compared to projections of a low-double-digit to low-teens increase previously.
During its annual investor day during the quarter, AstraZeneca laid out its goals to increase revenue to $80 billion annually by 2030, nearly double the $45.81 billion the company reported in fiscal 2023, with a number of new drugs in testing.
“This is a clear reflection of the substantial growth potential we see from both our approved medicines and those in our late-stage pipeline,” AstraZeneca CEO Pascal Soriot said. “Already this year we have announced five positive, potentially practice-changing Phase III studies that are anticipated to meaningfully contribute to our growth.”
Despite the revenue beat and lifted guidance, AstraZeneca’s American depositary receipts (ADRs) were 4% lower at $79.71 in pre-market trading Thursday following the release.