AstraZeneca Q3 Earnings Preview: Will Cancer, Heart Drugs Fuel Continued Growth?

AstraZeneca plc AZN is set to report its third-quarter 2024 earnings Tuesday morning, and the company's second-quarter performance hints at robust growth fueled by its oncology and cardiovascular portfolios.

What To Know: In the second quarter, AstraZeneca reported $12.94 billion in revenue, marking a 13% year-over-year increase (17% at constant currency), surpassing analysts' expectations of $12.75 billion.

This was bolstered by steady demand across its core therapeutic areas and an impressive array of high-performing drugs. Adjusted earnings per ADR (equivalent to two common shares) came in at 99 cents, in line with consensus, while adjusted EPS reached $1.98.

AstraZeneca's oncology division, which remains the largest revenue driver, saw a 15% boost in sales to $5.33 billion. Key contributors were the cancer treatments Tagrisso, Imfinzi and Calquence, generating $1.61 billion, $1.15 billion and $790 million, respectively.

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Tagrisso's popularity continues to rise globally, reflected in an 8% sales increase (12% at constant currency). Calquence, a leading therapy for first-line chronic lymphocytic leukemia (CLL), jumped 21% in revenue.

Enhertu, developed in collaboration with Daiichi Sankyo, showed exceptional growth at 46%, indicating the strong market reception of AstraZeneca's innovative oncology pipeline.

What Else: The Cardiovascular, Renal and Metabolism (CVRM) segment performed similarly well in the second quarter, with sales up 18% (22% at CER) to $3.16 billion. Farxiga, AstraZeneca's standout diabetes and heart failure treatment, contributed $1.95 billion, reflecting a 29% sales increase.

Respiratory & Immunology (R&I) saw significant gains, too, with Breztri revenue up 44% and sales for the asthma drug Tezspire nearly doubling. Rare disease treatments also contributed positively, with Ultomiris leading this segment's 10% growth, counterbalancing the decline of older drug Soliris.

For the full fiscal year, AstraZeneca anticipates mid-teens percentage growth in both revenue and core EPS, driven by its established treatments and expansion into new indications. As the company pivots away from COVID-19 vaccine revenues, it leans into its robust portfolio, led by oncology and CVRM.

According to data from Benzinga Pro, AZN has a 52-week high of $87.67 and a 52-week low of $60.48.

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