AstraZeneca reports profit jump in second quarter, confirms outlook
Profit before tax climbed 30% to $3.13 billion in the second quarter, up from last year's $2.40 billion, the Cambridge-based firm said.
Earnings per share came in at $1.57, up from $1.24 in the same period last year.
Core earnings per share stood at $2.17 for the period. Earnings before interest, taxes, depreciation and amortization (EBITDA) climbed 22% to $4.90 billion from last year's $4.03 billion.
AstraZeneca said total revenue for the quarter increased 12% to $14.46 billion from last year's $12.94 billion. Revenue, meanwhile, grew 11% at constant exchange rates.
Analysts on average expected the company to record revenues of $14.10 billion for the quarter. Analysts' estimates typically exclude special items.
Looking ahead, AstraZeneca continues to expect core earnings per share to increase by a low double-digit percentage in the 2025 financial year, and total revenue to increase by a high single-digit percentage.
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A longer-term view of the positive impact of Berkshire's share repurchases is illuminating. Since the start of more aggressive share repurchases in 2018, Berkshire's operating earnings have grown at a 16.5% compound growth rate, while operating earnings per share have done 2.1 percentage points better at 18.6%. Eagle-eyed readers might notice that operating earnings growth oddly exceeded operating earnings per share growth over the last year. Berkshire issued some shares to purchase the remainder of Berkshire Hathaway Energy (BHE) in October 2024. Hope for an occasional big opportunity: Berkshire has a fortress balance sheet with cash and equivalents of over $339 billion. Cash as a percentage of Berkshire Hathaway's size is close to the highest on record, at 29.6%. This cash hoard provides flexibility to take advantage of opportunities, including repurchasing its stock if the price declines to attractive levels. 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Investors flocked to Berkshire stock as a haven when the odds of recession soared with the tariff threat. As the fear of recession receded, some investors re-allocated to other stocks, and Berkshire's valuation had become stretched in May. While Berkshire's quarterly operating earnings were down modestly year-over-year, there were some pleasant surprises in the data. Excluding insurance and the other segment, which is heavily impacted by foreign exchange volatility, operating profits grew 13% year-over-year. The BNSF railroad made significant progress in improving productivity to drive higher profits. The manufacturing, service, and retailing segment was surprisingly resilient with 12% year-over-year operating earnings growth. Lastly, one of Berkshire's crown jewels, GEICO, seems to be back in profitable growth mode with policies in force continuing to rise.
