AstraZeneca's Prescription for Growth
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Investors are justifiably surprised by the stock's performance against severe headwinds. Along those lines, I don't even believe management has gotten the credit they deserve. The question now is, to what extent can AstraZeneca sustain this run in the face of growing competition from Johnson & Johnson
CEO Pascal Soriot has shown more than enough times that he'll find an edge if one exists. Never shy about doing deals, three times last year Soriot pulled out his checkbook, spending roughly $1.5 billion in three separate acquisitions. When it comes to building for the future, AstraZeneca takes a backseat to no one. At the same time as it has also fought slowing growth with strategic cost-cutting measures.
The company will look to extend this winning streak when it reports fourth-quarter and full-year earnings results on Thursday. The Street will be looking for earnings-per-share of $1.22 on revenue of $6.91 billion, which represents a 5% year-over-year revenue decline. If you've been following the sector's performance over the past couple of quarters, you'll notice the revenue trend has been weak and growth has slowed. So that's not where the attention should be placed.