AstraZeneca shares decreased 1.7% to 10,676.4p in late morning trading on Friday, despite a 48% growth in revenue to $22.2 billion, reflecting expansion in all divisions except for Other Medicines.
The pharmaceutical giant announced a 71% surge in operating profit to £1.4 billion, excluding the impact of its Alexion acquisition, exchange rates and additional one-time costs.
AstraZeneca noted its operating profits were boosted by higher-margin treatments, which contributed a higher level of sales.
The company reported its higher operating profit helped to offset a 33% climb in operating costs year-on-year.
FY 2022 guidance
Meanwhile, AstraZeneca confirmed an optimistic outlook for Covid-19 medicines caused the firm to revise its guidance, including a low-20s percentage revenue growth from a previous expectation of high-teens percentage increase.
“AstraZeneca’s doing better than expected, and it’s taking this opportunity to set itself up for the future. The group’s in the process of signing new contracts for its Covid-treatments as the pandemic subsides in a step away from its pledge to sell vaccines at-cost,” said Hargreaves Lansdown equity analyst Laura Hoy.
“While the group’s said it’s covid medicines will carry a lower margin, they’ll finally start contributing to the bottom line. For now it seems AZN is in good shape to weather the economic storm, exchange rate tailwinds adding a welcome boost.”
“Healthcare falls firmly into the essentials bucket, and that’s a good place to be during a downturn. However it’s worth noting that lawmakers could turn their attention back to the drug price debate in a bid to ease the cost of living crisis.”
“While Astra racked up some brownie points for its role in combatting the pandemic, that won’t insulate it if big pharma ends up in the crosshairs.”
The pharmaceutical group said it expected an EPS rise in the mid-to-high teens percentage.
AstraZeneca announced a 93c HY1 2022 dividend.
