Shares Surge on Earnings Release
Shares in UK drugmaker Astra Zeneca, famous for its covid vaccine, are surging higher today in response to the group’s latest earnings report. While Q4 revenues were a little below forecasts at $930.5 billion vs $934 billion expected, the group’s full year 2022 results were solid with profits soaring to $3.2 billion from the prior year’s $112 million. Revenues for the full year jumped to $44.35 billion, up from $37.42 billion. Additionally, EPS for FY 2022 soared to $2.11 from $0.08 a year prior.
Strong Sales Outside of Covid Vaccine
The group attributed its bumper profits, not just to continued sales of its covid vaccine but also a spike in sales for leading diabetes and cancer drugs. Looking ahead, the groups forecasts further sales growth in 2023 with EPS forecast to rise by a high single digit to low double digit percentage. Additionally, the company has cited the reopening of the Chinese economy as a strong encouraging factor for the 2023 outlook with demand expected to increase in coming months and quarters as the post-pandemic recovery continues.
Technical Views
Astra Zeneca
The recent correction lower stalled on approach to the bull channel lows with strong buying taking price back up to challenge the 11342 area resistance. This is a key level for the stock and bulls need to see a convincing breach here to encourage fresh buying. Momentum studies have flipped bullish here supporting the rally with the bull channel top the next target above current resistance.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.