British pharmaceutical giant AstraZeneca PLC (GB:AZN) raised its annual sales and profit forecast for 2024 after delivering strong Q3 results. The company now expects its 2024 revenue and core EPS (earnings per share) to grow by a high-teens percentage as compared to its earlier forecast of mid-teens percentage growth based on constant currency rates.
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Despite the positive outlook, the market reacted negatively, with shares down 1.4% as of writing. Over the past month, AZN stock has dropped 17%, reflecting concerns about the company’s operations in China amid ongoing investigations by national authorities.
AstraZeneca Delivers Strong Growth in Q3
In Q3, AstraZeneca reported a 21% year-over-year increase in revenue, which reached $13.57 billion at a constant exchange rate (CER) and surpassed the consensus estimate of $13.08 billion. For the first nine months, total revenue increased 19% to $39.2 billion.
Among its segments, revenue from the company’s Oncology division rose 22% in Q3, fueled by strong sales of blockbuster cancer medications Enhertu and Tagrisso. Meanwhile, the Respiratory and Immunology (R&I) unit saw a 29% increase in revenue at CER.
Meanwhile, AstraZeneca’s core EPS grew 27% at CER to $2.08 per share compared to a year ago.
AstraZeneca Boosts U.S. Presence with $3.5B Investment
Along with its results, AstraZeneca announced a total investment of $3.5 billion in the U.S. by the end of 2026. This includes a new spending of $2 billion, which will focus on research and development as well as expanding manufacturing sites in Maryland, Texas, and California.
The company stated that this huge investment highlights the attractive business environment in the U.S. along with strong innovation capabilities.
Is AstraZeneca a Good Stock to Buy?
As per the consensus rating on TipRanks, AZN stock received a Moderate Buy rating based on nine Buys, two Holds, and three Sells. The AstraZeneca share price forecast stands at 13,602.10p, which is 38.62% above the current trading level.
