AstraZeneca storms up on forecast busting numbers

Shares in AstraZeneca climbed more than 4% in late morning deals after the group reported better than expected first quarter sales and earnings.

Shares shot up 119p to £25.62 after the numbers were released.

Core earnings per share for the period were $1.58 - well above the market consensus of $1.41.

Sales in the three months to the end of March jumped 7% at constant exchange rates to $7.701 billion - above the $7.67 billion the market had been looking for. 

Crestor sales increased by 35% as the group's US sales of Toprol-XL were boosted by the withdrawal of generic competitors and emerging market sales rose 15%.

It said the global economic conditions remain difficult and 'caution is warranted' when assessing the potential impact of these conditions on the pharmaceutical sector.

'Our business has proved to be resilient in the first quarter, the result of excellent execution in driving growth in key product franchises and in all regions, whilst delivering improvements in operating efficiency,' said chief executive David Brennan.

He reiterated the group's full year target for Core EPS of $5.15 to $5.45 saying this reflected the group's cautious approach to the difficult trading environment.

The current market consensus is for EPS of $5.39 and market watchers now expect that to go higher.

'First quarter numbers were stronger than expected with sales a little above the consensus and operating margin at 41% ahead of consensus of 34.9%,' said a trader at a leading Scandinavian brokerage.