How might AZN's Q3 2024 earnings influence long-term investors?
3/29/2025 04:13pm
**AstraZeneca's (AZN) Q3 2024 earnings report is unlikely to have a significant negative impact on long-term investors**, considering the following points:
1. **Strong Revenue Growth**: AZN reported a 25% year-on-year increase in revenues for Q4 2024, amounting to $14.89 billion. This robust growth indicates a strong market demand for the company's products and services, which is a positive sign for long-term investors.
2. **Earnings Per Share (EPS) Growth**: The company's EPS for Q4 2024 was $1.05, compared to $0.73 in the year-ago quarter. This represents a significant 71% increase, suggesting that the company is not only growing its top line but also generating higher profits, which is a favorable indicator for long-term investors.
3. **Dividend Increase**: AZN announced an increase in the 2025 full-year dividend to $3.20 per share from $3.10 in 2024. This demonstrates the company's commitment to returning value to shareholders, which is a positive sign for long-term investors who prioritize dividend income.
4. **Pipeline Advancements**: The company's CEO, Pascal Soriot, highlighted pipeline advancements, including nine pivotal trial readouts with potential non-risk adjusted peak year revenue of over $5 billion. This suggests that AZN has a strong pipeline of future products, which could drive continued growth and profitability in the long term.
5. **Strategic Investments**: AZN plans to invest $3.5 billion in the U.S. to support clinical trial manufacturing and facilities for advanced technologies. These strategic investments are likely to position the company well for future growth and innovation.
6. **Outlook for 2025**: The company anticipates total revenue growth in the high single digits and core EPS growth in the low double digits for 2025. This positive outlook, despite anticipated headwinds from the IRA impacts in the U.S. and VBP inclusion for key products in China, suggests that AZN is well-positioned to navigate challenges and continue growing.
In conclusion, while short-term market reactions to earnings reports can be volatile, the underlying growth in revenues, EPS, and the company's strategic initiatives and dividend policy are more likely to influence long-term investors positively. The company's strong financial performance and growth prospects suggest that Q3 2024's earnings report is not likely to deter long-term investors.