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 |
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% |
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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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