Glaxo (GSK) Beats Earnings and Revenues in Q1
GlaxoSmithKline plc GSK, one of the largest health care companies, reshaped its business following the Mar 2015 completion of the three-part, inter-conditional transaction with Novartis related to its Consumer Healthcare, Vaccines and Oncology businesses. Under the deal, Glaxo sold its oncology assets to Novartis and acquired Novartis’ Vaccines business (excluding influenza vaccines). Additionally, the companies created a joint venture (JV), thereby combining their consumer divisions to form a larger consumer health care business.
Following the completion of the deal, the UK-based company now focuses on its three core businesses – Pharmaceuticals (respiratory, HIV), Vaccines (pediatric, adolescent, adult, and travel vaccines) and Consumer Healthcare (wellness, oral health, nutrition and skin health products).
However, like many of its peers, Glaxo is facing challenges in the form of increasing competition, genericization and pricing pressure in major markets.
In this scenario, investor focus remains on late-stage pipeline candidates and their commercial potential, restructuring and cost-cutting initiatives and performance of new products apart from the usual top-and bottom-line numbers.
Glaxo’s performance has been pretty good so far, with the company’s earnings beating expectations thrice in the trailing four quarters while missing in one. Overall, the company has delivered an average positive surprise of 11.03%.
GlaxoSmithKline PLC Price and EPS Surprise
GlaxoSmithKline PLC Price and EPS Surprise | GlaxoSmithKline PLC Quote
Currently, Glaxo has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Glaxo reported core earnings of 63 cents per American depositary share, which marginally beat our consensus estimate of 62 cents.
Revenues: Revenues were up 5% year over year at constant exchange rate (CER) to $9.25 billion. Revenue also beat Zacks Consensus Estimate of $9.09 billion.
Key Stats: Sales in the quarter were driven by strong performance across all three business segments. The Consumer Healthcare and Vaccines segments were up 2% and 16%, respectively at CER. The Pharmaceuticals segment was also up 4% at CER.
2017 Guidance: Glaxo maintained its core 2017 earnings growth of 5-7% at CER. This is based on an expected decline in 2017 US Advair sales of 15-20%.
Share Price Impact: Shares are up less than 1% in pre-market trading.
Check back later for our full write up on GSK earnings report later!
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
GlaxoSmithKline PLC (GSK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
