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What Analysts Expect for AstraZeneca Going Forward

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Analyst estimates

As discussed earlier, AstraZeneca surpassed Wall Street analysts’ estimates for EPS and revenues with reported EPS of $1.03 on revenues of ~$5.8 billion during 4Q17 as compared to the estimates of EPS of $0.71 on revenues of ~$5.4 billion during 4Q17. Wall Street analysts estimate EPS of $0.38 on revenues of $5.3 billion during 1Q18.

The above chart compares the actual EPS and analysts’ estimates for EPS since 1Q16. For 1Q18, the gross margin is expected to decrease to 82.9% as compared to 84.7% in 1Q17, while the net profit margin is expected to decrease to 20.8% during 1Q18 as compared to 23.2% during 1Q17.

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Annual estimates

AstraZeneca surpassed Wall Street analysts’ estimates for EPS and revenues and reported EPS of $2.37 on revenues of ~$22.4 billion during 2017 as compared to EPS estimates of $2.14 on revenues of ~$22.1 billion during 2017.

Wall Street analysts estimate the company to report EPS of $1.71 during 2018 as compared to EPS of $2.37 during 2017. Further, the revenues are estimated to increase to $22.5 billion during 2018, marginal growth compared to $22.4 billion for 2017.

The gross margin is expected to increase to 81.2% during 2018 as compared to 80.8% during 2017. The EBITDA margin is expected to decrease to 31.3% during 2018 as compared to 44.0% during 2017. The net profit margin is expected to decrease to 19.0% during 2018 as compared to 24.1% during 2017.

The Vanguard FTSE All-World ex-US ETF (VEU) holds 7.3% of its total investments in healthcare companies. VEU holds 0.4% in AstraZeneca (AZN), 0.4% in GlaxoSmithKline (GSK), 0.4% in Sanofi (SNY), and 0.8% in Novartis (NVS).

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