AstraZeneca’s 1Q17 revenue

AstraZeneca’s (AZN) revenues are expected to fall 12.2% to $5.4 billion during 1Q17 as compared to $6.1 billion for 1Q16. As discussed earlier, the company is set to release its earnings on April 27, 2017.

Why AstraZeneca Could See Lower Revenues in 1Q17

The above graph shows the revenues of AstraZeneca over last few quarters and analysts’ estimates for 1Q17. As the company has its operations in over 100 countries and ~60% of total revenues come from sales outside US markets, the company is very exposed to currency risk.

Segment-wise performance

Analysts expect the company’s four segments to post the following revenue performances:

  • The cardiovascular and metabolic diseases segment’s revenues are expected to fall in 1Q17, mainly due to lower sales of Crestor, Atacand, and Byetta, partially offset by higher sales of Brilinta, Farxiga, and Seloken.
  • The respiratory segment’s revenues are expected to fall in 1Q17, as the increase in sales of Pulmicort and new products like Duaklir and Daliresp will likely be offset by the lower sales of Symbicort and Tudorza/Eklira during the quarter.
  • The oncology segment’s revenues are expected to increase in 1Q17 due to the strong performance of new products including Tagrisso and Lynparza as well as Zoladex and Faslodex, partially offset by lower sales of Iressa, Casodex, and Arimidex.
  • Other product revenues are expected to fall in 1Q17 due to the lower sales of key drugs including Nexium, Seroquel, Losec, and FluMist.

Growth platforms

AstraZeneca has classified certain products and regions as growth platforms. The growth platforms include:

  • respiratory and diabetes products Brilinta and Brilique
  • new oncology products Tagrisso and Lynparza
  • regional sales from emerging markets and Japan

The growth platforms account for over 60% of AstraZeneca’s revenues.

To divest the risk, investors can consider ETFs like the Vanguard FTSE All-World Ex-US ETF (VEU), which holds ~0.2% of its total assets in AstraZeneca. VEU also holds 0.9% of its total assets in GlaxoSmithKline (GSK), 0.7% of its total assets in Novartis (NVS), and 0.4% of its total assets in Sanofi (SNY).

Latest articles

This year, Pfizer (PFE) stock has fallen 0.34% and Bristol-Myers Squibb (BMY) stock has fallen 6.48%. Both companies are focused on strengthening their position in the high-growth oncology and immunology markets. Let's take a closer look at each.

Walt Disney’s (DIS) latest movie, Toy Story 4, has reportedly broken records in the opening weekend with $118 million in sales. However, the opening weekend collection was behind analysts’ expectations of at least $150 million in the first weekend.

24 Jun

Will Home Depot’s Upward Momentum to Continue?

WRITTEN BY Rajiv Nanjapla

As of June 21, Home Depot (HD) was trading at $209.39, which implies a rise of 9.7% since the announcement of its first-quarter earnings on May 21. Also, the company was trading at a premium of 32.4% from its 52-week low of $158.09 and a discount of 2.8% from its 52-week high of $215.43.

On June 21, Aurora Cannabis (ACB) made an announcement that indicated that it will move towards higher margin vape products. In addition, the company also believes concentrates and edibles will command higher margins. In anticipation of this development, the company announced the expansion of its facility to capitalize on growth related to these segments.

Shares of Mondelēz International (MDLZ) are scaling new heights thanks to its stellar gains so far this year. Mondelēz stock is up 38.0% on a YTD (year-to-date) basis, and it closed at $55.25—just a shade lower than its 52-week high of $55.71—on June 21.

24 Jun

How Long Will Facebook's Libra Fuel Bitcoin Rally?

WRITTEN BY Mayur Sontakke, CFA, FRM

Ever since the news about Facebook’s (FB) cryptocurrency project broke, Bitcoin has rallied on the hope that Facebook’s entry in the space will help make cryptocurrencies mainstream. Facebook’s cryptocurrency will be called Libra and will be governed by an association with 28 founding members across industries.