AstraZeneca PLC (LSE:AZN) approaches its third-quarter update with its shares having slipped 15% from the all-time highs reached in the spring, when it jostled back past Shell to regain top spot of the FTSE 100.
But the Anglo-Swedish pharma giant has been dented by a steady waning of investor support in recent weeks.
In recent weeks investors have been spooked by results from French pharma giant Sanofi, which warned on 2024 profits as well as delivering third-quarter earnings that missed forecasts, and from fellow vaccine maker Pfizer, which also slashed its full-year earnings and revenue guidance as demand wanes for its Covid vaccines and other treatments.
There have also been more whispers about Pascal Soriot's imminent departure, but the drugmaker's chief executive said this was “fake news” and "nothing further from the truth" and "totally made up".
The week before, the shares fell over 3% on one day without any apparent negative news.
Earnings expectations
For the current year, AZ has guided for low-to-mid single-digit total revenue growth, if including Covid treatments, or low-double digit if excluding them.
Core earnings per share is expected to increase between high single digits and low double digits.
For this coming quarter, the City consensus is for top-line sales of US$11.51 billion, core operating profit of US$3.55 billion, and core diluted EPS of US$1.74.
UBS said key growth drivers in the quarter will be sales of Tagrisso (US$1.5 billion forecast), Lynparza (US$724 million), Imfinzi (US$1 billion) and Calquence (US$673 million).
Analysts at the bank expect a focus on the implications of the recent data presented for new cancer drug Dato-DXd, "and given AstraZeneca’s exposure to China questions on the detail around the negative impact form the anti-Corruption campaign that was flagged in the aide memoir".
They also flag "major catalysts" as updates on the Enhertu Destiny-Breast06 trial and Imfinzi EMERALD trial in locoregional liver cancer.