Why did AZN consistently beat earnings forecasts in 2024?

AstraZeneca's consistent beating of earnings forecasts in 2024 can be attributed to several key factors:

1. **Strong Revenue Growth**: AstraZeneca experienced significant revenue growth, with total revenue increasing by 23.84% in the fourth quarter of 2024, reaching $14.89 billion. This overall growth was driven by strong sales in key therapy areas such as oncology, rare diseases, and cardiovascular treatments.
2. **Product Sales Growth**: Product sales grew by 19% for the full year 2024, contributing to the overall revenue growth. The company's focus on expanding product sales and improving revenue from collaborations played a crucial role in boosting its financial performance.
3. **Economics of Scale**: As AstraZeneca continues to grow, it gains more leverage on its R&D investments, reducing the cost of bringing new medicines to market. This economics of scale allows the company to maintain profitability while investing in innovation.
4. **Market Demand for Medicines**: The demand for AstraZeneca's medicines, particularly in oncology and rare diseases, remained strong throughout 2024. This demand was fueled by the company's successful pipeline of high-value medicines and the adoption of its products across various geographies.
5. **Strategic Partnerships and Collaborations**: AstraZeneca's alliances and collaborations contributed to a 55% increase in alliance revenue and a 54% increase in collaboration revenue in 2024. These partnerships have been instrumental in generating additional revenue streams and expanding the company's market reach.
6. **Dividend Increase**: AstraZeneca's decision to increase its dividend, declaring a second interim dividend of $1.97 per share in 2024, reflects the company's confidence in its cash flow and commitment to returning value to shareholders. This move can enhance investor confidence and positively influence the stock's performance.

In summary, AstraZeneca's consistent beating of earnings forecasts in 2024 can be attributed to strong revenue growth, product sales expansion, economies of scale, market demand for its medicines, strategic partnerships, and a dividend increase. These factors combined to deliver robust financial performance and exceeded market expectations.