AstraZeneca PLC (AZN, Financial) shares rose by 2.01% today, reflecting positive market reaction following the company's recent robust earnings announcement. This performance outpaced the broader market benchmark, highlighting investor optimism.
AstraZeneca reported impressive financial results for the fourth quarter and full year 2024, with total quarterly revenue reaching $14.89 billion, a 24% increase from the previous year. The company's core earnings per share jumped to $2.09, significantly outstripping the projected analyst expectations of $1.06 per share and $14.15 billion in revenue. Key drivers of this revenue growth were the strong performances in the oncology and respiratory and immunology segments, which grew by 24% and 25% year-over-year, respectively. Additionally, the cardiovascular, renal, and metabolism (CVRM) division posted a solid 20% increase in sales.
Looking forward, AstraZeneca has provided guidance for 2025, forecasting a high single-digit percentage rise in total revenue and a low double-digit percentage increase in core earnings per share, adjusted for constant currency.
From a valuation perspective, AstraZeneca's current price at $72.36 per share suggests it is modestly undervalued according to the GF Value, which is estimated at $86.88. The company's P/E ratio stands at 32.09, and it maintains a market capitalization of $219.56 billion. With a price-to-book ratio of 5.72 and a healthy Piotroski F-Score of 7, AstraZeneca demonstrates financial strength and sustainable growth potential. Furthermore, its debt-to-equity ratio of 0.78 indicates a balanced level of leverage.
Despite some financial stress indicated by an Altman Z-Score of 2.97, AstraZeneca's financial metrics reveal a robust position, with a cash-to-debt ratio of 0.16 and a gross margin of 80.92%. The stock also boasts a forward PEG ratio of 0.93, indicative of growth at a reasonable price. AstraZeneca's solid earnings growth, alongside strong fundamentals, positions the company well in the competitive pharmaceutical industry.
Overall, AstraZeneca's recent financial performance and future growth prospects make it an attractive investment opportunity for those looking to capitalize on the healthcare sector's steady demand and innovation-driven growth.
