Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Bear of the Day: AstraZeneca (AZN)

By Zacks Investment ResearchStock MarketsNov 26, 2021 06:07AM ET
www.investing.com/analysis/bear-of-the-day-astrazeneca-azn-200609635
Bear of the Day: AstraZeneca (AZN)
By Zacks Investment Research   |  Nov 26, 2021 06:07AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Headquartered in London, AstraZeneca (NASDAQ:AZN) AZN is one of the largest biopharmaceutical companies in the world, focusing metabolic disease, cardiovascular, respiratory, immunology, and oncology therapeutics. The company recently acquired rare disease drugmaker Alexion (NASDAQ:ALXN) for $39 billion; the deal added five marketed products to AZN’s pipeline.

Q3 Earnings Disappoint Wall Street

Shares of AZN slipped nearly 7% after the company reported third-quarter results a couple of weeks ago.

AstraZeneca’s revenue jumped 50% year-over-year to $9.9 billion, easily surpassing the consensus estimate of $9.4 billion. However, AZN posted a hefty loss of $1.10 per share on the bottom line due to significantly higher expenses related to the Alexion acquisition. Analysts were looking for earnings of $1.28 per share on average.

But, the Alexion purchase is already adding to top-line growth. Sales have been increasing for Ultomiris and Strensiq, which treat Paroxysmal Nocturnal Hemoglobinuria (PNH) and perinatal/infantile- and juvenile-onset hypophosphatasia (HPP), respectively, and have offset declines in the rare-disease drug Soliris.

AstraZeneca’s product lineup continues to demonstrate positive momentum, despite the earnings miss last quarter. In particular, its oncology franchise—this includes drugs like Tagrisso and Imfinzi—delivered solid growth.

Bottom Line

AZN is now a Zacks Rank #5 (Strong Sell).

Four analysts have cut their full year earnings outlook over the past 60 days, and the consensus estimate has fallen five cents to $2.62 per share. Wall Street has lowered its earnings picture for 2022 as well, but the bottom line is expected to post double-digit year-over-year growth.

Shares have been on a bumpy ride so far in 2021. Year-to-date, AZN is up only 12.7% compared to the S&P 500’s gain of 25.2%.

Looking ahead, AstraZeneca expects total revenue, excluding its Covid-19 vaccine, to grow by a “low-twenties percentage” for fiscal 2021, remaining in-line with prior-guidance. EPS is expected to increase to a range of $5.05 to $5.40 per share.

AZN also announced that it will begin selling its Covid-19 vaccine for a profit after promising not to do so during the pandemic. This, along with a potential Emergency Use Authorization for its preventative coronavirus antibody shot AZD7442 (known as Evusheld) and potential U.S. and European approval for its asthma drug tezepelumab, could help catalyze AZN and send shares higher.


Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix (NASDAQ:NFLX) did to Blockbuster and Amazon (NASDAQ:AMZN) did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.

See 3 crypto-related stocks now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

AstraZeneca PLC (AZN): Free Stock Analysis Report

To read this article on Zacks.com click here.
Bear of the Day: AstraZeneca (AZN)
 

Related Articles

Bear of the Day: AstraZeneca (AZN)

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email