AstraZeneca 1st-qtr 2011 hit by generics, but still beat forecasts

Anglo-Swedish drug major AstraZeneca (LSE: AZN) reported first-quarter 2011 results with a 4% dip in revenues to $8.29 billion, slightly up on consensus estimates of $8.42 billion, reflecting more than $550 million in sales erosion from generics.

Core operating profit dipped 5%c to $3.68 billion, including a $131 million benefit from the settlement of patent disputes between MedImmune and PDL Biopharma. The effective tax rate was 11.3% on reported basis and 12.3% on a core basis. Core earnings per share increased 10% to $2.23, versus consensus forecasts of $2.1, and reported ESP increased 10% to $2.08. The company raised its full-year 2011 EPS guidance to a range of $6.95 to $7.25 due to the PDL settlement; effective tax rate to be around 21% for 2011.