Alexion – Buy Signal

NASDAQ listed Alexion Pharmaceuticals is now under Algo Engine buy conditions.

May 6, 2020-Alexion Pharmaceuticals announced first quarter 2020 revenues of 1.bn, (27% increase on the same time last year).

On a GAAP basis, diluted EPS in the quarter was $2.50, a 4 percent decrease versus the prior year.

Non-GAAP diluted EPS for the first quarter of 2020 was $3.22, a 35 percent increase versus the first quarter of 2019.

Alumina – ATO Dispute

Alumina has run into issues with the Australian Tax Office following a review of transfer pricing arrangements with the AWAC JV.

The claim relates to a 20 year period and the ATO is claiming an additional tax of $200M plus interest. Other penalties may also be due and will be further communicated to the JV next month.

We forecast FY21 EBIT to increase to $350m, supporting a forward yield of 6%.