AstraZeneca share price held steady this week after the company published strong financial results on Tuesday. AZN stock was trading at 10,790p, a range it has remained in the past few days. It remains 10% above the lowest point this year.
AstraZeneca earnings download
The main catalyst for the AstraZeneca share price is its earnings, which showed that its business made some improvements in the second quarter.
Its results showed that AstraZeneca’s product sales jumped by 8% in the year’s first half to $26.67 billion. Its alliance revenue stood at over $1.2 billion, bringing its first-half figure to $28 billion, higher than the median estimate of $27.5 billion.
The company’s growth was driven by its oncology business, led by Tagrisso, which made over $3.48 billion in revenue. Its oncology revenue jumped to over $11.95 billion.
Its oncology business was followed by the Cardiovascular, Renal, and Metabolism (CVRM), which made $6.5 billion. This division was propelled by Farxiga, a drug used to treat type 2 diabetes mellitus, heart failure, and chronic kidney disease.
The other drivers of AstraZeneca’s revenue was its rare disease products, vaccines and immunization (V&I), and renal, which made over $411 million and $4.2 billion.
The US remains AstraZeneca’s biggest revenue driver, which explains why its stock has wavered recently. Trump has threatened to impose substantial tariffs on medicine imports in the US. As a result, AstraZeneca has pledged to invest at least $50 billion in the US until 2030.
AstraZeneca said that its US revenue jumped to $11.9 billion, representing 43% of its total. It was followed by emerging markets, with China bringing in $3.5 billion of the $7.6 billion.
Europe’s revenue was $5.82 billion, while the rest of the world brought in $2.5 billion.
AstraZeneca believes that its business will continue doing well this year. It expects that its revenue will increase by a high single-digit percentage, whilv its core EPS will rise by low double-digit percentage. Pascal Soriot, the CEO, said:
“Our strong momentum in revenue growth continued through the first half of the year and the delivery from our broad and diverse pipeline has been excellent, with 12 positive key Phase III trial readouts, including for baxdrostat, gefurulimab, and Tagrisso in just the past few weeks.”
AstraZeneca share price analysis
AZN stock price chart | Source: TradingView
The daily chart shows that the AZN stock has remained in a tight range in the past few days. It moved from a low of 9,560p in April to 10,790p today.
AstraZeneca stock price moved slightly above the 50-day and 100-day moving averages. It is also slightly above the 61.8% Fibonacci Retracement level.
There are signs that the stock has formed a bearish flag pattern, a common risky pattern. Therefore, the stock will likely remain in this range in the coming days.
More gains will be confirmed if the stock rises above the upper side of the ascending channel at $11,000. A move below the support at $10,650 will invalidate the bullish view.
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