AstraZeneca’s EPS of $1.25 exceeded estimates, showcasing strong financial performance.
Revenue fell short of estimates, with a ‘soft’ performance in China contributing to the shortfall.
The company’s oncology portfolio drove significant growth, maintaining full-year guidance despite potential legal challenges in China.
AstraZeneca (NASDAQ:AZN) is a global biopharmaceutical company known for its innovative medicines, particularly in oncology, cardiovascular, renal, and respiratory diseases. The company competes with other pharmaceutical giants like Pfizer and Merck. On April 29, 2025, AstraZeneca reported earnings per share (EPS) of $1.25, exceeding the estimated $1.10, showcasing its strong financial performance.
Despite the positive EPS, AstraZeneca’s revenue of $13.59 billion fell short of the estimated $13.74 billion. The company’s total revenue increased by 10% at constant exchange rates, reaching $13.6 billion, driven by strong performances in oncology and biopharmaceuticals. However, a ‘soft’ performance in China contributed to the revenue shortfall, as noted by analysts.
The company’s oncology portfolio was a significant growth driver, highlighting its importance to AstraZeneca’s overall performance. Despite a 4% decline in share price following the revenue report, the company maintained its full-year guidance, expecting high single-digit percentage growth in total revenue.
AstraZeneca faces potential legal challenges in China, which could result in a fine of up to $8 million. The company’s financial metrics, such as a price-to-earnings (P/E) ratio of 61.63 and a price-to-sales ratio of 8.02, indicate strong market valuation. However, the current ratio of 0.93 suggests that AstraZeneca has slightly less than one dollar in current assets for every dollar of current liabilities, which may impact its short-term financial flexibility.