AstraZeneca’s total revenue rose 8% in Q4 2023, according to its latest earnings report released Thursday morning, but analysts were largely unimpressed.

During the most recent quarter, the British pharma giant recorded total revenue of just over $12 billion, with its reported earnings per share (EPS) rising 5% at constant exchange rates (CER) to $0.62, while its core EPS increased 7% to $1.45.

At CER, product sales revenue increased 5% to $11. Billion, alliance revenue jumped 67% and collaboration revenue skyrocketed 74%. Its oncology division jumped 24% with strong, broad performances across medicines, while Farxiga sales boosted its CVRM segment. 

One major transaction the company announced during the quarter was its acquisition of biotech Icosavax in a deal worth up to $1.1 billion. The transaction provides the company with a boost to its vaccine pipeline with a particular focus on products developed with Icosavax’s protein virus-like particle platform.

For the full year, AstraZeneca’s total revenues rose 6% to $45.8 billion, supported by 4% product sales revenue growth. The company’s reported EPS increased 96% year-over-year to $3.84 and its core EPS rose 15% to $7.26.

Like so many drugmakers, the waning demand for COVID-19 products hampered the bottom line, with AstraZeneca notching a $3.7 billion decline in revenue from COVID products over the year.

Eyeing 2024, the company stated that its total revenue and core EPS are projected to increase by a low double-digit to low teens percentage. The drugmaker added that its collaboration revenue is expected to increase “substantially” thanks to milestones and certain anticipated transactions.

“As AstraZeneca celebrates its 25th anniversary, we are pleased to report another year of strong financial performance and scientific progress, with double-digit earnings growth, and investment in exciting areas of science, including antibody drug conjugates and cell therapies, that lay the foundations for long-term success,” AstraZeneca CEO Pascal Soriot said in a statement. “We expect another year of strong growth in 2024, driven by continued adoption of our medicines across geographies. Our differentiated and growing portfolio of approved medicines, global reach and rich R&D pipeline give us confidence that we will continue to deliver industry-leading growth.”

However, despite the growth numbers, AstraZeneca left Wall Street wanting more.

The company’s quarterly core EPS was below analyst expectations of $1.48 and the revenue figure barely exceeded expectations of $12.01 billion.

The company’s higher costs and lower-margin sales in emerging markets also factored into the sour sentiment among analysts, who also considered the company’s guidance conservative and within consensus expectations.

Deutsche Bank Research stated that the drugmaker’s earnings miss “in the places that matter.”

As a result of the lukewarm response, the company’s stock was trading down 7% during the mid-morning session.