AstraZeneca released its third quarter earnings report before opening bell this morning, posting core profits of $1.73 billion, compared to the Wall Street estimate of $1.66 billion. Revenue declined 10% to $5.95 billion, although analysts had been expecting a steeper drop. Core earnings were $1.03 per share, a 2% year over year increase, while reported earnings were 61 cents per share.
AstraZeneca’s net profit triples
The drug maker reported net profit of $770 million, compared to last year’s $254 million. Core gross margin edged upward by 1% to 83.3%.
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AstraZeneca’s growth platform’s grew 10% and made up 57% of total revenue. The Respiratory segment increased 8% (in constant currencies) so far year today, with 38% growth in Emerging Markets. Sales of Brilinta/ Brilique grew 44% with a 73% increase in the U.S. year to date The Diabetes segment recorded a 26% increase with 73% growth in Emerging Markets. Emerging Markets sales grew 12%, while China sales increased 17% year to date, while Japan revenue grew 3%, including 6% sales growth in the third quarter.
“I’m pleased with our continued progress as we focus on executing our plans across our growth platforms and pipeline,” said AstraZeneca CEO Pascal Soriot in a statement. “While we have more work to do on the submission of saxagliptin/dapagliflozin combination in Diabetes, the significant label update for Brilinta was accompanied by submission acceptances and accelerated reviews in cancer, respiratory diseases and lupus. In particular, our exciting Oncology portfolio maintained its momentum with four Priority Review and Fast Track designations as well as supportive data at key congresses.”
AstraZeneca raises guidance
AstraZeneca also upped its guidance for the full year. Management now expects revenue to be flat with last year. Previously, they had projected a year over year decline in the low single digit percentages. In core earnings, they expect an increase in the mid to high single digit percentages. Previously, they were expecting an increase in the low single digit percentages.
Shares of AstraZeneca increased by as much as 2.33% to $32.90 per share in premarket trading this morning.