AstraZeneca Full-Year and Q4 2018 Results

[idpickering]

The final quarter of the year saw a very strong performance, including Product Sales growth of 5% (8% at CER1) to $5,768m. In the year, Product Sales increased by 4% to $21,049m, reflecting the performance of new medicines2 (+81%) and the sustained strength of Emerging Markets (+12%, +13% at CER); China sales increased by 28% (25% at CER) in the year. Oncology sales increased by 50% (49% at CER) in FY 2018, with Tagrisso and Lynparza each doubling in sales, accompanied by a promising performance from Imfinzi. Fasenra sales reached $297m in its first full year, performing exceptionally well in the countries where it was launched.

The Board has reaffirmed its commitment to the progressive dividend policy; a second interim dividend of $1.90 per share has been declared post year end, taking the unchanged full-year dividend per share to $2.80

The record date for the second interim dividend for 2018, payable on 27 March 2019, will be 1 March 2019. The ex-dividend date will be 28 February 2019. The record date for the first interim dividend for 2019, payable on 9 September 2019, will be 9 August 2019. The ex-dividend date will be 8 August 2019.

https://www.investegate.co.uk/astrazene ... 00039536P/

[idpickering]

The CEO Pascal Soriot is being interviewed on Bloomberg tv at 1045hrs today.

Ian.

[idpickering]

Not that we're bothered, but sp up over 4% as I type. They beat the market estimates. I hold these, almost equally weighted on capital value terms, along with GlaxoSmithKline. Between them they make up 6.2% in capital value terms of my HYP.

Ian.

[SuperCally]

The final quarter of the year saw a very strong performance, including Product Sales growth of 5% (8% at CER1) to $5,768m. In the year, Product Sales increased by 4% to $21,049m, reflecting the performance of new medicines2 (+81%) and the sustained strength of Emerging Markets (+12%, +13% at CER); China sales increased by 28% (25% at CER) in the year. Oncology sales increased by 50% (49% at CER) in FY 2018, with Tagrisso and Lynparza each doubling in sales, accompanied by a promising performance from Imfinzi. Fasenra sales reached $297m in its first full year, performing exceptionally well in the countries where it was launched.

The Board has reaffirmed its commitment to the progressive dividend policy; a second interim dividend of $1.90 per share has been declared post year end, taking the unchanged full-year dividend per share to $2.80

The record date for the second interim dividend for 2018, payable on 27 March 2019, will be 1 March 2019. The ex-dividend date will be 28 February 2019. The record date for the first interim dividend for 2019, payable on 9 September 2019, will be 9 August 2019. The ex-dividend date will be 8 August 2019.

https://www.investegate.co.uk/astrazene ... 00039536P/

£Sterling values:
The Board reaffirms its commitment to the progressive dividend policy; a second interim dividend of $1.90 per share (146.8 pence, 17.46 SEK) has been declared, taking the unchanged full-year dividend per share to $2.80 (215.2 pence, 25.38 SEK)

[moorfield]

Not that we're bothered, but sp up over 4% as I type.

Well I imagine the medianic tinkerers might start twitching soon. I'm holding on for the long term, I'd want to see the sp move a lot more, nearer to £90 / yield 2.5% ish perhaps, before cashing in.

[idpickering]

Not that we're bothered, but sp up over 4% as I type.

Well I imagine the medianic tinkerers might start twitching soon. I'm holding on for the long term, I'd want to see the sp move a lot more, nearer to £90 / yield 2.5% ish perhaps, before cashing in.

Likewise, thank you moorfield. Up over 5% now......step away from the sell button! lol. Nah, I'm holding.

Ian.

[moorfield]

Up over 5% now......step away from the sell button!

As I usually like to point out, even that hasn't shifted its yield or that of your HYPs overall significantly.

What's the opposite of a "falling knife" I wonder ...

[kempiejon]

The Board has reaffirmed its commitment to the progressive dividend policy; a second interim dividend of $1.90 per share has been declared post year end, taking the unchanged full-year dividend per share to $2.80

The dividend has been $2.80 since 2011, and the board re-affirm their progressive dividend policy. I do hold in my ISA, I sold some unsheltered holding last year and moved the money into an ISA and bought something else. That's not progressive enough for me.

[ayshfm1]

Still got a progressive dividend policy (aka a static one)

In fairness I have subsequently looked up this and the accepted meaning is the dividend rises as earning per share does, but it does not fall if EPS does. So if EPS was higher when the current dividend amount was set then it doesn't need to rise until it is greater.

Presumably EPS is therefore still does not exceed the point where the dividend was set.

[moorfield]

That's not progressive enough for me.

I understand the sentiment, but the context of one's HYP overall matters also surely.

I'm quite comfortable with the AZN dividend. No I won't be buying more at current yield, but while I'm reinvesting it elsewhere my snowball keeps rolling along quite satisfactorily.

If one is drawing down income and feel this year's won't improve on last year's overall, because of the static dividend, I agree one might question why one continues to hold.

[kempiejon]

I understand the sentiment, but the context of one's HYP overall matters also surely.

I'm perfectly happy with the AZN dividend. No I won't be buying more at current yield, but while I'm reinvesting it elsewhere my snowball keeps rolling along quite satisfactorily.

If one is drawing down income and feel this year's won't improve on last year's overall, because of the static dividend, I agree one might question why one continues to hold.

moorfield, I concur, AZN is not a buy but I don't just eliminate them on yield, if they were yielding 5% I'd still pass as my buying criteria include a rising dividend history and I think describing a static dividend as progressive is a bit of a stretch. I'll continue to hold as I don't like to sell (other than the mentioned tax planning) so my holdings can freeze, reduce or abandon their dividends.

[idpickering]

The CEO Pascal Soriot is being interviewed on Bloomberg tv at 1045hrs today.

Ian.

It seems this didn’t happen, as far as I’m aware?

Ian.

[idpickering]

Here's the interview I mentioned;

https://www.bloomberg.com/news/videos/2 ... says-video

Ian.

[bluedonkey]

The usual trickery with EPS. Two EPS figures: $1.70 unadjusted doesn't cover the full year dividend of $2.80. But the "adjusted" EPS is $3.46 and so - hey presto! - the dividend is covered.

[scrumpyjack]

Yes it's great just choosing to ignore loads of expenses that arise every year and dream up a phoney 'core' eps figures. It's pure fiction.
Cannot Recommend A Purchase

[idpickering]

This from TMF;

Here’s why the AstraZeneca share price is flying today

Shares in FTSE 100 pharma giant AstraZeneca (LSE: AZN) rose strongly in early trading today as market participants lapped up the company’s latest set of results. Personally, I won’t be joining the queue for the shares. Here’s why.

Returning to growth

Much of this morning’s reaction is probably due to the £73bn-cap’s very strong performance in the final three months of 2018. Over this period, product sales growth of 5% (or up 8% at constant exchange rate) was recorded. With sales hitting $5.77bn while markets were tanking across the world, AstraZeneca was clearly having a very good end to the year.

https://www.fool.co.uk/investing/2019/0 ... ing-today/

[csearle]

...step away from the sell button! lol.

Where is that? C.

[ADrunkenMarcus]

The trend on Return on Capital Employed and Operating Margin since 2000, using unadjusted figures (pre-exceptionals, too), is not too pretty. The average for the period is still pretty good, though. Let's hope forecasts, which include strong earnings and cashflow growth in 2019 and 2020, materialise.

Held since 1998.

Best wishes

Mark.

[Arborbridge]

The usual trickery with EPS. Two EPS figures: $1.70 unadjusted doesn't cover the full year dividend of $2.80. But the "adjusted" EPS is $3.46 and so - hey presto! - the dividend is covered.

I noted a similar problem with BBOX the other day, mentioned in another thread. One reason some of people gave up eps in favour of cash flow cover, and another reason I virtually gave up on company accounts - to me it's all smoke and mirrors. Despite the legal requirements on accounting, the "authorities" still have the ability to obfuscate and confuse.

Arb.

[scrumpyjack]

Generally all the important data you need is in the accounts. They still have to disclose the actual EPS figure even though they do their best to distract from it.

The sad thing is that they have managed to con the financial journalists to report the concocted EPS figure as if it is the real one. Another good reason to treat financial journalists and analysts with great scepticism.