Please ensure Javascript is enabled for purposes of website accessibility

Why AstraZeneca Stock Is Jumping Today

By Keith Speights - Apr 30, 2021 at 10:55AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company reported better-than-expected first-quarter results.

What happened

Shares of AstraZeneca (AZN -0.18%) were jumping 4.9% as of 10:43 a.m. EDT on Friday. The gain came after the big drugmaker announced its first-quarter results before the market opened.

So what

AstraZeneca reported revenue in the first quarter of $7.32 billion, up 15% year over year. This result topped the Wall Street consensus estimate of $7.1 billion.

$1 bill folded into an arrow pointing up

Image source: Getty Images.

The company posted earnings of $1.19 per share, a 100% year-over-year increase. AstraZeneca reported core earnings (which exclude profits that aren't part of its main business) of $1.63, up 55% year over year. The average analysts' estimate was for earnings per share of $0.75. 

AstraZeneca's improvement was driven primarily by several of its top-selling drugs. Cancer therapy Tagrisso generated sales of $1.15 billion in Q1, a 17% year-over-year increase. Sales for diabetes drug Farxiga soared 54% to $625 million. The company also recorded revenue of $275 million for its COVID-19 vaccine, which it's selling at cost during the pandemic.

Now what

One good quarter will only give the big pharma stock a temporary bounce. What really matters is how AstraZeneca will perform over the longer term. The company remains optimistic about its prospects. AstraZeneca expects total revenue this year will jump by "a low-teens percentage" and looks for even more impressive growth with its core earnings.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

AstraZeneca PLC Stock Quote
AstraZeneca PLC
AZN
$65.95 (-0.18%) $0.12

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
316%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/03/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.