AstraZeneca PLC (LON:AZN) Beat Earnings, And Analysts Have Been Reviewing Their Forecasts

As you might know, AstraZeneca PLC (LON:AZN) just kicked off its latest quarterly results with some very strong numbers. The company beat expectations with revenues of US$13b arriving 7.2% ahead of forecasts. Statutory earnings per share (EPS) were US$1.41, 6.3% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for AstraZeneca

Taking into account the latest results, the current consensus from AstraZeneca's 27 analysts is for revenues of US$51.1b in 2024. This would reflect a satisfactory 7.4% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 34% to US$5.49. In the lead-up to this report, the analysts had been modelling revenues of US$50.8b and earnings per share (EPS) of US$5.53 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at UK£132. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on AstraZeneca, with the most bullish analyst valuing it at UK£176 and the most bearish at UK£105 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that AstraZeneca's revenue growth is expected to slow, with the forecast 10% annualised growth rate until the end of 2024 being well below the historical 17% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.6% annually. So it's pretty clear that, while AstraZeneca's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on AstraZeneca. Long-term earnings power is much more important than next year's profits. We have forecasts for AstraZeneca going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with AstraZeneca .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.