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AstraZeneca raises annual profit forecast as China's CPI contracts

EditorPollock Mondal
Published 09/11/2023, 08:24 pm
© Reuters.
AZN
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In recent financial news, AstraZeneca (NASDAQ:AZN) has raised its annual core profit forecast amidst high demand for oncology and rare blood disorder drugs. The company reported a 4% increase in core earnings per share (EPS) to $1.73 Today, as third-quarter total revenue climbed to $11.49 billion, up from last year's $10.98 billion. The pharmaceutical giant now expects growth in core earnings to be in the range of low double-digit to low-teens percentage.

Meanwhile, China's Consumer Price Index (CPI) recorded a 0.2% contraction in October, signaling ongoing disinflationary pressures. This comes after the country experienced deflation in July and flat rates in September. Additionally, October marked the 13th consecutive month of factory-gate deflation, demonstrated by a year-on-year decline of 2.6% in the producer price index.

These developments highlight the contrasting economic scenarios. On one hand, AstraZeneca's increased forecast signifies robust demand for its products, while on the other hand, China's contracting CPI points towards persistent disinflationary pressures within its economy.

InvestingPro Insights

In addition to the current financial news, InvestingPro provides valuable data and tips for investors. AstraZeneca (AZN), the pharmaceutical giant, yields a high return on invested capital and is expected to see a growth in net income this year, according to InvestingPro. This aligns with the company's raised annual core profit forecast and the reported increase in core earnings per share.

AstraZeneca also boasts impressive gross profit margins, reinforcing its strong financial performance. Despite some analysts revising their earnings downwards for the upcoming period, the company's stock generally trades with low price volatility, making it a less risky investment.

InvestingPro offers numerous other tips for investors, providing insights into a company's financial health and potential. For instance, AstraZeneca has maintained dividend payments for 31 consecutive years, indicating a consistent return for shareholders.

So, while the global economic scenario may seem contrasting, with AstraZeneca's robust demand on one hand and China's contracting CPI on the other, InvestingPro data and tips offer a more comprehensive view of individual investment opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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