AstraZeneca beats revenue forecasts in Q1, but earnings slide

24th Apr 2014 07:04

- Revenues up three per cent, ahead of forecasts- BMS diabetes buyout boosts top line- Earnings fall more than expectedRevenues at AstraZeneca were given a boost in the first quarter by the pharmaceutical company's diabetes franchise, but earnings fell by more than expected.AstraZeneca, whose share price surged earlier this week on speculation it could be susceptible to a takeover bid from Pfizer, said that revenue totalled $6.42bn in the three months to March 31st, up 3% at constant exchange rates (CER) and ahead of analysts' forecast for $6.39bn.The "consolidation" of the company's diabetes franchise - following the multi-billion dollar buyout of partner Bristol-Myers Squibb (BMS) completed in February - contributed two percentage points to revenue growth, the company said."The first quarter has seen continued momentum across the business and our revenue growth reflects the increasing contribution from the five growth platforms that showed strong performance," said Chief Executive Pascal Soriot.However, despite the top-line growth, core earnings per share (EPS) declined by 11% at CER to $1.17, mainly due to investment in the company's key growth platforms and rapidly progressing pipeline. The consensus estimate was for EPS of $1.20.Core pre-tax profit declined by 13% at CER to $1.83bn.Meanwhile, reported EPS totalled just $0.40 for the quarter, down 40% at CER over the year due to the loss on disposal of Astra's R&D site at Alderley Park and the impact of the acquisition of BMS's share of the global diabetes alliance.Soriot added: "We are investing in our rapidly progressing pipeline and the key platforms that are the backbone of our strategy to return to growth. To further concentrate organisational focus, we will continue to redeploy our resources in our core priorities and pursue opportunities that maximise the value of our pipeline and portfolio."AstraZeneca was making headlines on Tuesday after it was reported the the company had held informal discussions with Pfizer over a tentative $100bn (£60bn) approach from the US pharma group. The UK-listed firm is said to have rejected the offer.BC