AstraZeneca’s 1Q18 Earnings: Analysts’ Estimates

A look at AstraZeneca

AstraZeneca (AZN) is one of the leading pharmaceutical companies that deals with primary care and specialty care products. Though it’s headquartered in London, England, the company reports its revenue in US dollars. The company is set to release its 1Q18 earnings on May 18.

AstraZeneca’s 1Q18 Earnings: Analysts’ Estimates

The above chart compares AstraZeneca’s revenue and EPS (earnings per share) since 1Q17 and its estimates for 1Q18. Analysts expect AstraZeneca to report EPS of $0.60 on revenue of $5.3 billion during 1Q18 compared to EPS of $0.99 on revenue of $5.4 billion during 1Q17.

1Q18 estimates

Analysts’ expect AstraZeneca’s top line to be $5.3 billion in 1Q18, a 2.3% fall compared to $5.4 billion in 1Q17. The company’s revenue is expected to fall due to lower sales of its cardiovascular and metabolic disorder products, respiratory products, and other products, including FluMist, Nexium, and Seroquel XR. However, the decrease could be substantially offset by the strong performance of oncology products, including Lynparza, Iressa, and Tagrisso.

Profit margin estimates

Analysts expect the company’s gross profit margin to contract to 80.4% in 1Q18 compared to 83.5% in 1Q17. The contraction in its gross profit margin is expected due to the increased cost of sales of its products. Also, an increase in operating expenses offset by a decrease in selling, general, and administrative expenses and a decrease in research and development expenses will likely impact its EBITDA (earnings before interest, tax, depreciation, and amortization) margin in 1Q18. The company’s EBITDA margin is expected to be ~22.8% in 1Q18 compared to ~43.0% in 1Q17. Analysts expect AstraZeneca to report net adjusted income of $793.9 million in 1Q18.

Notably, the Vanguard FTSE Developed Markets ETF (VEA) holds 0.4% of its total investments in AstraZeneca, 0.4% in Novo Nordisk (NVO), 0.5% in GlaxoSmithKline (GSK), and 0.9% in Novartis (NVS).

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