AstraZeneca PLC (LSE:AZN) has increased its earnings guidance after a strong quarter during which EPS grew by 70% at constant exchange rates.
The Anglo-Swedish drugs giant says it now expects 2022 core EPS to increase by the high-twenties to low-thirties percent. It previously told the market to pencil in growth in the mid-to-high twenties percent range.
“After a strong performance in the year to date, we have increased our core EPS guidance for the full year 2022,” said AZ chief executive Pascal Soriot.
“Additionally, recent encouraging data for several of our pipeline programmes have given us the confidence to proceed with additional late-stage clinical trials as we maintain our focus on the delivery of our growth ambitions.”
For the three months ended 30 September 2022, AZ’s core earnings were US$1.67, while for the year to date they were US$5.28, up 52%.
The company cited a favourable product mix (particularly strong sales of oncology products) and the acquisition of Alexion for a boost to the company’s gross profit margins, which grew to 81%.
Declining sales AZ’s lower-margin Covid jab Vaxzevria also had a positive impact on gross margin.
Revenues for the quarter grew by 19% at constant exchange rates to US$10.98bn and were up 37% to US$33.14bn for the year to date.
This reflected the impact of consolidating sales for rare diseases group Alexion, which AZ formally acquired in July last year for US$39bn.