Why AstraZeneca Stock Was Topping the Market on Tuesday
The pharmaceutical sector veteran reported a prosperous quarter on Tuesday.
It posted double-digit increases in key fundamentals.
10 stocks we like better than AstraZeneca Plc ›
AstraZeneca (NASDAQ: AZN) reported an estimates-busting quarter Tuesday morning, and a satisfied market rewarded the company for it. At market close the sturdy pharmaceutical stock had risen by nearly 3% in value, while the benchmark S&P 500 index finished with a 0.3% decline.
Double-digit improvements
AstraZeneca, which is headquartered in the U.K. but reports its financials in U.S. dollars, earned just under $14.5 billion in its second quarter. That was a robust 12% higher year over year, and beat the consensus analyst estimate of slightly below $14.1 billion.
Profitability also rose at a double-digit percentage rate. The company's "core" (non-GAAP, or adjusted) net income came in at just under $3.4 billion. In per-share terms, this was $2.17, a figure 10% higher than in the same period of 2024. This blew past the average pundit projection of $1.09.
AstraZeneca attributed its notably higher revenue to strong growth in sales of oncology drugs and biopharmaceuticals. Taking a peek into the future, the company also said it recorded 12 positive phase 3 clinical trial readouts of drugs in development.
A pledge to nearly double revenue within a few years
Speaking of periods to come, AstraZeneca reiterated its guidance for the entirety of 2025. Management believes it will be able to boost revenue, at constant exchange rates, in the high single digit percentages compared to full-year 2024. The company also reaffirmed its commitment to reaching annual revenue of $80 billion by 2030; last year's top line reached just over $42 billion.
Meanwhile, core net earnings are forecast to rise at a low double-digit percentage rate. AstraZeneca did not get more specific.
Should you invest $1,000 in AstraZeneca Plc right now?
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends AstraZeneca Plc. The Motley Fool has a disclosure policy.
Why AstraZeneca Stock Was Topping the Market on Tuesday was originally published by The Motley Fool
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