On Feb. 1, 2007, AstraZeneca (NYSE:AZN) released fourth-quarter earnings for the period ended Dec. 31.

  • Sales increased by 13.8%, thanks to strong performance from key drugs like Crestor, Seroquel, and Arimidex. The company's flagship product, Nexium, also reported solid growth of 12%, reaching sales of $5.2 billion.
  • While margins were flat across the board, they remain at very robust levels.
  • For 2007, management expects high single-digit revenue growth with double-digit EPS growth. 2007 EPS is guided to fall in a range of $3.80 to $4.05. A forward P/E of 15 is reasonably attractive, given the company's drug portfolio and growth prospects.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$7,154

$6,286

13.8%

Net Profit

$1,445

$1,227

17.8%

EPS

$0.93

$0.77

20.8%

Diluted Shares

1,545

1,592

(3.0%)



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

77.9%

77.9%

0.0

Operating Margin

28.0%

26.0%

2.0

Net Margin

20.2%

19.5%

0.7

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$7,760

$6,603

17.5%

Accounts Rec.

$5,561

$4,778

16.4%

Inventory

$2,250

$2,206

2.0%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$6,334

$5,466

15.9%

Long-Term Debt

$1,087

$1,111

(2.2%)



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$7,693

$6,743

14.1%

Capital Expenditures

$794

$810

(2.0%)

Free Cash Flow

$6,899

$5,933

16.3%



Find out why Fools always follow the money.

Related Companies:

  • Johnson & Johnson (NYSE:JNJ)
  • Eli Lilly (NYSE:LLY)
  • Merck (NYSE:MRK)
  • Abbott Laboratories (NYSE:ABT)
  • Wyeth (NYSE:WYE)

Related Foolishness:

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.