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Highlights
- London’s FTSE100 index was in a buoyant mood on 10 February after it saw third day of gains in a row.
- The total revenues of AstraZeneca increased by 41% to $37,417 million in 2021, and it has raised its 2022 sales forecast and annual dividend.
London’s FTSE100 index was in a buoyant mood on 10 February. It touched a fresh two-year high on 9 February. The index closed up by 28.98 points, ending the day at 7,672.4. However, investors are still sitting tight as they await the US inflation data. UK’s leading pharmaceutical company AstraZeneca (LON: AZN) was the top gainer, and with the release of its full-year and Q4 2021 results its shares are in the spotlight.
Update on performance and outlook
AstraZeneca released its full year and Q4 2021 results on 10 February 2022, which showed that 2021 was a year of extraordinary pipeline and commercial delivery for it. The total revenues of the pharma company increased by 41% to US$37,417 million in 2021. The COVID-19 vaccine revenues were included in this figure. However, excluding the vaccine revenue, the revenue was up by only 26% to US$33,436 million. In the fourth quarter of 2021, the total revenue was up by 62%, touching to $12,011 million.
AstraZeneca’s core EPS was up by 32% last year, and through the acquisition of Alexion, the company has been able to speed up its strategic transformation. Evusheld and Tezspire have also been approved, which is positive news for the company’s pipeline and supports its outlook for 2022. However, due to the acquisition of Alexion and the additional funds spent on R&D and product launches, the company reported a pre-tax loss of US$265 million as compared to a profit of US$3.9 billion in the previous year.
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Image description- Pharmaceutical company AstraZeneca’s performance
As the future prospects and cash generation potential of the company seem bright, AstraZeneca’s board is planning to raise the annualised dividend from US$0.10 to US$2.90. In March 2022, the company is due to pay a second interim dividend of US$1.97 for the year 2021, making the total dividend for 2021 reach US$2.87.
The company has raised its guidance for the fiscal year 2022 after beating its Q4 profit expectations. However, it has warned that the sales numbers, which were significantly up owing to Covid-19 products, may start falling.
AstraZeneca’s share price performance
Cambridge-based AstraZeneca is listed on the main market of the London Stock Exchange since 1993. It is a constituent of the FTSE100 index, and it is also traded publicly on the Nasdaq exchange.
The current market cap of AstraZeneca stands at £129,593.50 million, and it has provided its shareholders with a return of 17.97% over the last one year as of 10 February 2022, while its year-to-date return stands at -0.52%.
AstraZeneca Plc’s shares closed trading at GBX 8,650.00, up by 3.42%, on 10 February 2022.
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Bottomline
With a robust growth trajectory in 2021, AstraZeneca is positive about its profitability and growth in the long run. The company has raised its 2022 sales forecast and annual dividend and has bright future prospects.
