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AstraZeneca (AZN) to Report Q3 Earnings: What's in the Cards?
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AstraZeneca, plc (AZN - Free Report) will report third-quarter 2022 results on Nov 10. In the last reported quarter, the company delivered an earnings surprise of 10.26%.
The British drugmaker’s performance has been decent, with earnings beating estimates in three of the trailing four quarters while missing in one. The company delivered a four-quarter earnings surprise of 3.88%, on average.
AstraZeneca’s stock has risen 4.7% this year so far compared with an increase of 2.7% for the industry.
Image Source: Zacks Investment Research
Factors to Consider
Sales of AstraZeneca’s key medicines, mainly cancer drugs — Lynparza, Tagrisso and Imfinzi — and diabetes medicine Farxiga are expected to have driven the company’s top line in the third quarter backed by strong demand trends. The Zacks Consensus Estimate for Lynparza, Tagrisso and Imfinzi are $724 million, $1.44 billion, and $682 million, respectively. The Zacks Consensus Estimate for Farxiga is $1.16 billion.
Please note that AstraZeneca markets Lynparza in partnership with Merck (MRK - Free Report) .
AstraZeneca and Merck formed a profit-sharing deal to co-market Lynparza and Koselugo in July 2017.
AstraZeneca and Merck’s Lynparza is approved for four cancer types, ovarian, breast, prostate and pancreatic. Lynparza is also being evaluated in an earlier-line setting for the approved cancer indications
AstraZeneca’s antibody cocktail medicine for COVID-19 Evusheld is likely to have been a key contributor to the top line. However, the sales contribution of the COVID-19 vaccine, Vaxzevria is likely to have been minimum. It is however to be seen how the receding impact of the pandemic has affected the demand of Evusheld.
AstraZeneca’s other drugs, Fasenra, Calquence and newer products, triple combo COPD treatment Breztri and lupus drug, Saphnelo (anifrolumab) are likely to have contributed to sales growth in the soon-to-be-reported quarter. The Zacks Consensus Estimate for Fasenra, and Calquence are $379 million and $535 million, respectively.
Product sales of some drugs like Brilinta/Brilique and Pulmicort in the past few quarters have been hurt due to COVID-related disruptions and pricing pressure from the VBP (volume-based procurement) program in China. The trend is likely to have continued in the third quarter.
Sales of AstraZeneca’s major legacy drugs have been declining due to rising generic competition. The trend is likely to have continued in the third quarter.
Sales of AstraZeneca’s Rare Disease drugs like Ultomiris and Strensiq, which were added following the Alexion acquisition, are also expected to have been higher, thus contributing to the top line.
Overall, sales in China are likely to have been hurt due to pricing pressure associated with the National Reimbursement Drug List (NRDL) and VBP programs, which are expected to have been offset by strong growth in ex-China emerging markets. It remains to be seen if the residual impact of the pandemic might have hurt the diagnosis and treatment rates of cancer medicines.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for AstraZeneca this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Earnings ESP: AstraZeneca’s Earnings ESP is 0.00% as the Zacks Consensus Estimate as well as the Most Accurate Estimate stand 77cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: AstraZeneca has a Zacks Rank #3.
Stocks to Consider
Here are some biotech stocks that have the right combination of elements to beat on earnings this time around:
Emergent Biosolutions (EBS - Free Report) has an Earnings ESP of +45.46% and a Zacks Rank #3.
Emergent Biosolutions missed earnings expectations in three of the trailing four quarters while delivering in-line results in one. It delivered a four-quarter negative earnings surprise of 90.89%, on average.
Emergent Biosolutions is scheduled to release its third-quarter 2022 results on Nov 8. The stock is down 54.1% this year so far.
Beam Therapeutics (BEAM - Free Report) has an Earnings ESP of +14.90% and a Zacks Rank#3.
Beam Therapeutics’ stock has declined 46.3% in the year so far. BEAM beat earnings expectations in each of the trailing four quarters, the average surprise being 19.14%.
Image: Bigstock
AstraZeneca (AZN) to Report Q3 Earnings: What's in the Cards?
AstraZeneca, plc (AZN - Free Report) will report third-quarter 2022 results on Nov 10. In the last reported quarter, the company delivered an earnings surprise of 10.26%.
The British drugmaker’s performance has been decent, with earnings beating estimates in three of the trailing four quarters while missing in one. The company delivered a four-quarter earnings surprise of 3.88%, on average.
AstraZeneca PLC Price, Consensus and EPS Surprise
AstraZeneca PLC price-consensus-eps-surprise-chart | AstraZeneca PLC Quote
AstraZeneca’s stock has risen 4.7% this year so far compared with an increase of 2.7% for the industry.
Image Source: Zacks Investment Research
Factors to Consider
Sales of AstraZeneca’s key medicines, mainly cancer drugs — Lynparza, Tagrisso and Imfinzi — and diabetes medicine Farxiga are expected to have driven the company’s top line in the third quarter backed by strong demand trends. The Zacks Consensus Estimate for Lynparza, Tagrisso and Imfinzi are $724 million, $1.44 billion, and $682 million, respectively. The Zacks Consensus Estimate for Farxiga is $1.16 billion.
Please note that AstraZeneca markets Lynparza in partnership with Merck (MRK - Free Report) .
AstraZeneca and Merck formed a profit-sharing deal to co-market Lynparza and Koselugo in July 2017.
AstraZeneca and Merck’s Lynparza is approved for four cancer types, ovarian, breast, prostate and pancreatic. Lynparza is also being evaluated in an earlier-line setting for the approved cancer indications
AstraZeneca’s antibody cocktail medicine for COVID-19 Evusheld is likely to have been a key contributor to the top line. However, the sales contribution of the COVID-19 vaccine, Vaxzevria is likely to have been minimum. It is however to be seen how the receding impact of the pandemic has affected the demand of Evusheld.
AstraZeneca’s other drugs, Fasenra, Calquence and newer products, triple combo COPD treatment Breztri and lupus drug, Saphnelo (anifrolumab) are likely to have contributed to sales growth in the soon-to-be-reported quarter. The Zacks Consensus Estimate for Fasenra, and Calquence are $379 million and $535 million, respectively.
Product sales of some drugs like Brilinta/Brilique and Pulmicort in the past few quarters have been hurt due to COVID-related disruptions and pricing pressure from the VBP (volume-based procurement) program in China. The trend is likely to have continued in the third quarter.
Sales of AstraZeneca’s major legacy drugs have been declining due to rising generic competition. The trend is likely to have continued in the third quarter.
Sales of AstraZeneca’s Rare Disease drugs like Ultomiris and Strensiq, which were added following the Alexion acquisition, are also expected to have been higher, thus contributing to the top line.
Overall, sales in China are likely to have been hurt due to pricing pressure associated with the National Reimbursement Drug List (NRDL) and VBP programs, which are expected to have been offset by strong growth in ex-China emerging markets. It remains to be seen if the residual impact of the pandemic might have hurt the diagnosis and treatment rates of cancer medicines.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for AstraZeneca this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Earnings ESP: AstraZeneca’s Earnings ESP is 0.00% as the Zacks Consensus Estimate as well as the Most Accurate Estimate stand 77cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: AstraZeneca has a Zacks Rank #3.
Stocks to Consider
Here are some biotech stocks that have the right combination of elements to beat on earnings this time around:
Emergent Biosolutions (EBS - Free Report) has an Earnings ESP of +45.46% and a Zacks Rank #3.
Emergent Biosolutions missed earnings expectations in three of the trailing four quarters while delivering in-line results in one. It delivered a four-quarter negative earnings surprise of 90.89%, on average.
Emergent Biosolutions is scheduled to release its third-quarter 2022 results on Nov 8. The stock is down 54.1% this year so far.
Beam Therapeutics (BEAM - Free Report) has an Earnings ESP of +14.90% and a Zacks Rank#3.
Beam Therapeutics’ stock has declined 46.3% in the year so far. BEAM beat earnings expectations in each of the trailing four quarters, the average surprise being 19.14%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.