AstraZeneca Plc (AZN) posted stronger-than-expected earnings in the fourth quarter but provided cautious 2017 guidance as its blockbuster Crestor drug sales continued to slow in the face of generic competition.
Core earnings for the period were marked at $1.21 per share, the company said, higher than the $1.14 per share estimate published by Factset. Revenues for the quarter came in at $5.585 million, largely in-line with analysts' expectations.
AstraZeneca shares fell 1% in early London trading to change hands at 4,2200 pence each, extending their three month loss to about 6.5%, a long way from the 5.4% gain for the Stoxx Europe TMI Pharmaceuticals Index.
"2017 has the potential to be a turning point for our company as we near the end of our patent-expiry period and bring new medicines to patients across the globe," said CEO Pascal Soriot. "We anticipate defining data, in particular from our outstanding pipeline of Immuno-Oncology and targeted treatments."
"This year we have the opportunity to launch several life-changing medicines for cancer, respiratory and metabolic diseases," he added. "It is an exciting time as we rapidly approach the inflection point for our anticipated return to long-term growth, built on the solid foundations of a science-led pipeline."
Looking ahead, the company sees "low to mid single-digit" declines in total revenues, and "a low to mid-teens percentage decline in core EPS."
"Guidance is subject to base-case assumptions of the progression of the pipeline and the extensive level of news flow listed on the following page," the company said "Variations in performance between quarters can be expected to continue, with year-on-year comparisons expected to ease in the second half of FY 2017, when the impact of the entry of Crestor generic medicines in the US will annualise."
