The UK’s second-largest listed company by market cap (at the time of writing) presents an opportunity for investors after releasing another robust set of results.
Shareholders will be delighted to see the Pharmaceutical giant post a 21% increase in sales in Q3. The company’s diversified product range is enjoying a broad increase in demand, with particular strength in oncology and cardiovascular drugs.
Higher sales are translating into higher profits, and the group upgraded its profit growth guidance to the high teens on a percentage basis from the mid-teens.
“AstraZeneca’s third-quarter results have delivered a second guidance upgrade in as many quarters. The numbers exhibited the breadth of the product range with high growth levels seen in Oncology, Cardiovascular, Renal and Metabolic disorders and BioPharmaceuticals,” said Derren Nathan, head of equity research, Hargreaves Lansdown.
“The quarter included the now customary peppering of strong clinical results and regulatory approvals. And Astra’s not taking anything for granted.”
AstraZeneca’s scale and ability to produce such substantial revenue increases should supersede any concerns about a Chinese probe that may have created a buying opportunity for investors.
“Over the last month, the emergence of a Chinese enquiry into marketing practices surrounding Astra’s lung cell treatment Tagrisso has wiped around £30bn from the company’s market value,” Nathan said.
“Based on similar occurrences in recent history, this would seem overdone. Given the impressive financial performance and continued progress from the cutting-edge pipeline, those brave enough to exploit the current weakness in the valuation may be well rewarded.”