Shares of AstraZeneca PLC (LSE: AZN) dropped by 1.8%, leading to a £2.8 billion decrease in the company’s market value. This decline was primarily due to ongoing concerns about the pharmaceutical giant’s cost structure, despite reporting revenues that exceeded expectations and providing optimistic future projections.
Analysts at Shore Capital are optimistic that the company’s management will address these cost-related issues. They noted a pre-existing uncertainty about the evolution of the cost base in the short to medium term, and anticipate that further details provided in the earnings call might alleviate any residual worries.
In the last quarter, AstraZeneca announced a core EPS (Earnings Per Share) of US$1.45 and total revenues amounting to US$12.02 billion. This performance slightly surpassed the projected EPS of US$1.50 and revenue forecasts of US$12.01 billion.
Looking forward, AstraZeneca predicts a growth in total revenue and core EPS, ranging from low double-digits to low teens percentage for the upcoming year.
This positive forecast is underpinned by the expected robust performance of its new infant RSV vaccine and the continued demand for its cancer and rare blood disorder treatments.
