The 10-second takeaway
For the quarter ended June 30 (Q2), AstraZeneca met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share dropped significantly. GAAP earnings per share shrank significantly.
Margins dropped across the board.
AstraZeneca booked revenue of $6.23 billion. The 18 analysts polled by S&P Capital IQ foresaw sales of $6.23 billion on the same basis. GAAP reported sales were 6.4% lower than the prior-year quarter's $6.66 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $1.20. The nine earnings estimates compiled by S&P Capital IQ predicted $1.20 per share. Non-GAAP EPS of $1.20 for Q2 were 22% lower than the prior-year quarter's $1.53 per share. GAAP EPS of $0.66 for Q2 were 48% lower than the prior-year quarter's $1.27 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 78.9%, 100 basis points worse than the prior-year quarter. Operating margin was 19.3%, much worse than the prior-year quarter. Net margin was 13.2%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $6.43 billion. On the bottom line, the average EPS estimate is $1.30.
Next year's average estimate for revenue is $26.17 billion. The average EPS estimate is $5.23.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 45 members out of 50 rating the stock outperform, and five members rating it underperform. Among two CAPS All-Star picks (recommendations by the highest-ranked CAPS members), two give AstraZeneca a green thumbs-up, and give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AstraZeneca is hold, with an average price target of $50.55.
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