AstraZeneca Shares (LON: AZN) Gain as Golden Cross Develops

AstraZeneca shares (LON: AZN) have gained 1.44% today, as the 50 day MA tests a cross of the 200 MA. This is a bullish technical development followed by chartists, commonly known as a ‘golden cross'.

From a technical standpoint, AstraZeneca's chart presents an interesting picture. While the short-term picture over the past month shows mixed results, with a dip of 4%, the medium and longer-term trends remain positive. Year to date returns and 12 month gains sit healthily above 7%.

The market’s focus, however, is firmly fixed on the company's forthcoming financial disclosures. AstraZeneca reported impressive full-year 2024 figures earlier this year, boasting a 21% surge in total revenue to $54.07 billion (at Constant Exchange Rates – CER) and a solid 19% increase in Core Earnings Per Share (EPS) to $8.21. Yet, this strong annual performance was slightly tempered by a fourth-quarter EPS result of $1.05, which narrowly missed the consensus analyst forecast of $1.10.

This slight miss amplifies the significance of the upcoming Q1 2025 earnings report, anticipated around April 24th or 29th. Current analyst consensus projects Q1 EPS around $1.10 (or 1.70 GBP) on revenues expected to reach approximately £10.64 billion. Achieving or surpassing these targets will be vital for bolstering investor confidence and validating the company's growth trajectory.

Looking beyond the immediate quarter, AstraZeneca's management has provided optimistic guidance for the full fiscal year 2025. The company projects total revenue to climb by a high single-digit percentage, accompanied by Core EPS growth in the low double-digits, both calculated at CER. Delivering on this outlook is crucial, particularly given the stock's current valuation. With a market capitalisation hovering around £174 billion ($230 billion), the trailing Price-to-Earnings (P/E) ratio is frequently reported in the low 30s (ranging from approximately 32.5 to 33.1 across sources), indicating that significant future growth is already factored into the share price. This leaves less margin for error if growth were to slow or targets were missed.

The current dividend yield sits around 2.15%, and the company has declared its intention to raise the annual dividend for fiscal year 2025 to $3.20 per share. This move signals management's confidence in sustained profitability and cash flow generation.

As the Q1 earnings date nears, investors and analysts alike will scrutinize the results not just for confirmation of the 2024 growth carrying into 2025, but also for updates on pipeline advancements and strategic initiatives.