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What's in Store for AstraZeneca (AZN) This Earnings Season?
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AstraZeneca plc (AZN - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 11 before market open.
The company’s earnings beat estimates in two of the past four quarters and missed the same twice, with the average earnings surprise being 0.67%.
Shares of AstraZeneca have declined 0.3% in the past year against the industry‘s increase of 2.5%.
In the last reported quarter, AstraZeneca delivered a negative earnings surprise of 4.08%.
Factors at Play
Sales of newer medicines, mainly cancer drugs Lynparza, Tagrisso and Imfinzi are expected to have benefited the company’s top line in the fourth quarter by offsetting lower sales of many other legacy and respiratory medicines.
Product sales of some drugs, especially Pulmicort, in the first nine months were hurt due to COVID-19 related disruptions. Though demand trends are likely to have improved following gradual re-opening of global economies during the third quarter, sales may still have been under pressure due to resurgence of infection rates.
Meanwhile, sales of Tagrisso are likely to have been higher in the fourth quarter on the back of continued underlying demand growth and strong uptake in the first-line setting.
Sales of Lynparza, which is marketed in collaboration with Merck (MRK - Free Report) , are likely to have been driven by expanded use in ovarian and breast cancer. Moreover, launch in prostate cancer and first-line HRD+ ovarian cancer should bring additional revenues. Some milestone payments for Lynparza were expected in the fourth quarter, which should have boosted collaboration revenues from Lynparza.
Fourth-quarter sales of Imfinzi are likely to have benefited from strong demand trends in the United States, especially in lung cancer indications. Moreover, the launch of the drug for patients with extensive stage small cell lung cancer is likely to have brought additional revenues in the soon-to-be reported quarter.
AstraZeneca’s other major drugs like Fasenra and Farxiga are likely to have contributed to sales growth in the soon-to-be reported quarter. However, Brilinta sales might have been hurt due to due to pricing pressure in China as well as the impact of COVID-19.
Sales of AstraZeneca’s COPD drug Symbicort improved in the first nine months, following the launch of an authorized generic version by AstraZeneca’s partner Prasco in the United States. The momentum is likely to have continued in the soon-to-be-reported quarter. However, slowdown in hospital visits in China due to the coronavirus might have hurt sales of Pulmicort during the 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 fourth quarter.
In December, AstraZeneca received approval for its coronavirus vaccine but that is unlikely to have any material impact on its fourth-quarter sales. Meanwhile, operating expense is likely to have been higher due to ongoing clinical studies as well regulatory procedures to gain approval for the vaccine.
The company will likely issue guidance for 2021 on its fourth quarter earnings call and may dicuss impact of resurgence of COVID-19 cases, especially in the United States and Europe.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for AstraZeneca in this reporting cycle. 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 as you will see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate (49 cents per ADS) and the Zacks Consensus Estimate (53 cents per ADS), is -6.96%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are two large biotech stocks that have the right combination of elements to beat on earnings this time around.
Exact Sciences Corporation (EXAS - Free Report) has an Earnings ESP of +46.97% and a Zacks Rank #3.
Seagen Inc. has an Earnings ESP of +4.81% and a Zacks Rank #3.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
What's in Store for AstraZeneca (AZN) This Earnings Season?
AstraZeneca plc (AZN - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 11 before market open.
The company’s earnings beat estimates in two of the past four quarters and missed the same twice, with the average earnings surprise being 0.67%.
Shares of AstraZeneca have declined 0.3% in the past year against the industry‘s increase of 2.5%.
In the last reported quarter, AstraZeneca delivered a negative earnings surprise of 4.08%.
Factors at Play
Sales of newer medicines, mainly cancer drugs Lynparza, Tagrisso and Imfinzi are expected to have benefited the company’s top line in the fourth quarter by offsetting lower sales of many other legacy and respiratory medicines.
Product sales of some drugs, especially Pulmicort, in the first nine months were hurt due to COVID-19 related disruptions. Though demand trends are likely to have improved following gradual re-opening of global economies during the third quarter, sales may still have been under pressure due to resurgence of infection rates.
Meanwhile, sales of Tagrisso are likely to have been higher in the fourth quarter on the back of continued underlying demand growth and strong uptake in the first-line setting.
Sales of Lynparza, which is marketed in collaboration with Merck (MRK - Free Report) , are likely to have been driven by expanded use in ovarian and breast cancer. Moreover, launch in prostate cancer and first-line HRD+ ovarian cancer should bring additional revenues. Some milestone payments for Lynparza were expected in the fourth quarter, which should have boosted collaboration revenues from Lynparza.
Fourth-quarter sales of Imfinzi are likely to have benefited from strong demand trends in the United States, especially in lung cancer indications. Moreover, the launch of the drug for patients with extensive stage small cell lung cancer is likely to have brought additional revenues in the soon-to-be reported quarter.
AstraZeneca’s other major drugs like Fasenra and Farxiga are likely to have contributed to sales growth in the soon-to-be reported quarter. However, Brilinta sales might have been hurt due to due to pricing pressure in China as well as the impact of COVID-19.
Sales of AstraZeneca’s COPD drug Symbicort improved in the first nine months, following the launch of an authorized generic version by AstraZeneca’s partner Prasco in the United States. The momentum is likely to have continued in the soon-to-be-reported quarter. However, slowdown in hospital visits in China due to the coronavirus might have hurt sales of Pulmicort during the 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 fourth quarter.
In December, AstraZeneca received approval for its coronavirus vaccine but that is unlikely to have any material impact on its fourth-quarter sales. Meanwhile, operating expense is likely to have been higher due to ongoing clinical studies as well regulatory procedures to gain approval for the vaccine.
The company will likely issue guidance for 2021 on its fourth quarter earnings call and may dicuss impact of resurgence of COVID-19 cases, especially in the United States and Europe.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for AstraZeneca in this reporting cycle. 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 as you will see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate (49 cents per ADS) and the Zacks Consensus Estimate (53 cents per ADS), is -6.96%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: AstraZeneca carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
AstraZeneca PLC Price and Consensus
AstraZeneca PLC price-consensus-chart | AstraZeneca PLC Quote
Stocks to Consider
Here are two large biotech stocks that have the right combination of elements to beat on earnings this time around.
Exact Sciences Corporation (EXAS - Free Report) has an Earnings ESP of +46.97% and a Zacks Rank #3.
Seagen Inc. has an Earnings ESP of +4.81% and a Zacks Rank #3.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>