AstraZeneca says net profit jumped more than 100% in the third quarter

Written by: Wajeeh Khan
November 5, 2020
  • AstraZeneca says net profit jumped more than 100% in the third quarter.
  • The pharmaceutical firm reports £5.05 billion of revenue in fiscal Q3.
  • The British company says it is on course to match its full-year guidance.

In a report on Thursday, AstraZeneca plc (LON: AZN) said that its net profit posted an over 100% annualised growth in the fiscal third quarter. Core earnings and revenue, however, were slightly lower than what analysts had anticipated. AstraZeneca confirmed its guidance for the full fiscal 2020 on Thursday.

Shares of the company opened more than 0.5% up on Thursday. At £85.11 per share, AstraZeneca is now over 10% up year to date in the stock market after recovering from a low of £62.21 per share in March. Confused about choosing a reliable stockbroker to trade online? Here’s a list of the top few to make selection easier for you.

AstraZeneca reports £5.05 billion of revenue in the third quarter

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The pharmaceutical company reported £496.97 million of net profit in Q3 as compared to £229.31 million in the same quarter last year. On a per-share basis, the British-Swedish multinational’s core earnings in the recent quarter printed at 72.09 pence. According to FactSet, experts had forecast a higher 77 pence of earnings per share for AstraZeneca in the third quarter.

In the prior quarter (Q2), AstraZeneca had recorded £581.18 million of net profit, as per the report published in late July.

In terms of revenue, the Cambridge-headquartered company posted a 2.7% year over year increase to £5.05 billion. Analysts had anticipated an even higher £5.07 billion of revenue for AstraZeneca in the recent quarter, as per FactSet.

AstraZeneca expressed confidence on Thursday that it was on course to match its annual guidance. The company forecasts close to a 10% annualised growth in its total revenue this year. It expects its annual core earnings per share to fall in the range of a 15% to 19% year over year increase.

AstraZeneca acknowledges COVID-19 uncertainties and risks

Nonetheless, AstraZeneca acknowledged the uncertainties and risks associated with the ongoing Coronavirus pandemic that has so far infected more than one million people in the United Kingdom and caused over 47 thousand deaths.

In an announcement last week, the pharmaceutical firm said it had struck a £306.77 million deal to sell commercial rights to its Atacand and Atacand Plus drugs in around 70 countries to Cheplapharm Arzneimittel GmbH.

AstraZeneca performed fairly upbeat in the stock market last year with an annual gain of more than 25%. At the time of writing, it is valued at £85.81 billion and has a price to earnings ratio of 68.05.