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Glaxo (GSK) to Report Q4 Earnings: What's in the Cards?
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GlaxoSmithKline plc (GSK - Free Report) will report fourth-quarter and full year 2021 results on Feb 9, before market open. In the last reported quarter, the company delivered an earnings surprise of 26.25%.
Shares of Glaxo have outperformed the industry in the past year. The stock has gained 27% compared with the industry’s increase of 19.3%.
Image Source: Zacks Investment Research
Glaxo’s earnings surpassed estimates in two of the trailing four quarters, missed the same once and matched it once, delivering a beat of 15.28%, on average.
Factors to Consider
During the fourth quarter, Glaxo’s revenues are likely to have been primarily driven by the COVID-19 drug, Xevudy (sotrovimab) — which was developed in collaboration with Vir Biotechnology (VIR - Free Report) . Higher sales from newer respiratory and HIV drugs are likely to have been offset by a decline in sales of older HIV drugs and Established Pharmaceuticals segment sales. It remains to be seen if the recovery in vaccine sales, seen in the previous two reported quarters, continued in Q4. The Zacks Consensus Estimates for revenues stands at $12.62 billion.
Vir-partnered Xevudy is likely to have generated significant sales during the fourth quarter from supply to the United States and other countries. Glaxo and Vir had U.S. government contracts for Xevudy doses worth approximately $1 billion. These doses were due for supply by Dec 17, 2021. Moreover, authorizations in the United Kingdom and Europe in December last year are likely to have generated additional Xevudy sales during the soon-to-be-reported quarter.
The growth trend in Respiratory category sales is expected to have continued in the fourth quarter on the back of strong demand for Trelegy Ellipta and Nucala despite the pandemic. The label expansions of Nucala in chronic rhinosinusitis in the United States in July and Europe in November are likely to have boosted sales of the drug during the fourth quarter. However, older respiratory drugs — Advair and Relvar/Breo Ellipta — that face competitive and pricing pressure are likely to have unfavorably impacted Glaxo’s respiratory sales.
Glaxo’s vaccine sales recovered during the past two quarters on the back of strong demand for its key vaccine, Shingrix, in the United States and higher pandemic adjuvant sales. The trend is likely to have continued in the fourth quarter.. However, COVID-19 vaccinations are likely to have increased during the fourth quarter amid widespread cases due to the Omicron variant, which may have hurt other vaccine programs.
Sales of Glaxo’s lupus drug, Benlysta, showed impressive growth in the previous two quarters despite COVID-related disruption. We expect the momentum to have continued in the soon-to-be-reported quarter. The drug’s approval in Europe in May is likely to have boosted sales during the fourth quarter.
Oncology sales, comprising Zejula and Blenrep, are also likely to have witnessed growth. The uptake trend of the newly-approved Jemperli remains to be seen.
The competitive environment and the shift in portfolio toward two-drug regimens may have hurt sales of three-drug regimens — Tivicay and Triumeq — and older HIV drugs. However, the strong growth trend witnessed in two-drug regimens, Juluca and Dovato, might have helped the company partially offset some of the losses in sales of the three-drug regimens. Glaxo may provide a sales outlook for its new HIV drug Apretude, extended-release cabotegravir, approved last December on its fourth-quarter earnings call.
Fourth-quarter sales of consumer healthcare business are likely to have continued the recovery momentum from the past two quarters. Glaxo had anticipated more normal consumer trends in the second half of the year.
Glaxo will likely provide an update related to the progress with the demerger of Consumer Healthcare business, following the rejection of Unilever’s (UL - Free Report) acquisition offers. The demerger is anticipated in mid-2022. Please note that Unilever offered to acquire Glaxo’s Consumer Healthcare business for $68 billion in December. Last month, Unilever expressed its unwillingness to raise its bid.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Glaxo this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. The Zacks Consensus Estimate stands at 63 cents per ADS. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Glaxo has a Zacks Rank #3.
GlaxoSmithKline plc Price, Consensus and EPS Surprise
Here is one large pharma/biotech stock that you may want to consider, as our model shows that it has the right combination of elements to post an earnings beat this season.
Pfizer’s stock has surged 53% in the past year. Pfizer topped earnings estimates in three of the last four quarters. Pfizer has a four-quarter earnings surprise of 10.85%, on average.
Image: Bigstock
Glaxo (GSK) to Report Q4 Earnings: What's in the Cards?
GlaxoSmithKline plc (GSK - Free Report) will report fourth-quarter and full year 2021 results on Feb 9, before market open. In the last reported quarter, the company delivered an earnings surprise of 26.25%.
Shares of Glaxo have outperformed the industry in the past year. The stock has gained 27% compared with the industry’s increase of 19.3%.
Glaxo’s earnings surpassed estimates in two of the trailing four quarters, missed the same once and matched it once, delivering a beat of 15.28%, on average.
Factors to Consider
During the fourth quarter, Glaxo’s revenues are likely to have been primarily driven by the COVID-19 drug, Xevudy (sotrovimab) — which was developed in collaboration with Vir Biotechnology (VIR - Free Report) . Higher sales from newer respiratory and HIV drugs are likely to have been offset by a decline in sales of older HIV drugs and Established Pharmaceuticals segment sales. It remains to be seen if the recovery in vaccine sales, seen in the previous two reported quarters, continued in Q4. The Zacks Consensus Estimates for revenues stands at $12.62 billion.
Vir-partnered Xevudy is likely to have generated significant sales during the fourth quarter from supply to the United States and other countries. Glaxo and Vir had U.S. government contracts for Xevudy doses worth approximately $1 billion. These doses were due for supply by Dec 17, 2021. Moreover, authorizations in the United Kingdom and Europe in December last year are likely to have generated additional Xevudy sales during the soon-to-be-reported quarter.
The growth trend in Respiratory category sales is expected to have continued in the fourth quarter on the back of strong demand for Trelegy Ellipta and Nucala despite the pandemic. The label expansions of Nucala in chronic rhinosinusitis in the United States in July and Europe in November are likely to have boosted sales of the drug during the fourth quarter. However, older respiratory drugs — Advair and Relvar/Breo Ellipta — that face competitive and pricing pressure are likely to have unfavorably impacted Glaxo’s respiratory sales.
Glaxo’s vaccine sales recovered during the past two quarters on the back of strong demand for its key vaccine, Shingrix, in the United States and higher pandemic adjuvant sales. The trend is likely to have continued in the fourth quarter.. However, COVID-19 vaccinations are likely to have increased during the fourth quarter amid widespread cases due to the Omicron variant, which may have hurt other vaccine programs.
Sales of Glaxo’s lupus drug, Benlysta, showed impressive growth in the previous two quarters despite COVID-related disruption. We expect the momentum to have continued in the soon-to-be-reported quarter. The drug’s approval in Europe in May is likely to have boosted sales during the fourth quarter.
Oncology sales, comprising Zejula and Blenrep, are also likely to have witnessed growth. The uptake trend of the newly-approved Jemperli remains to be seen.
The competitive environment and the shift in portfolio toward two-drug regimens may have hurt sales of three-drug regimens — Tivicay and Triumeq — and older HIV drugs. However, the strong growth trend witnessed in two-drug regimens, Juluca and Dovato, might have helped the company partially offset some of the losses in sales of the three-drug regimens. Glaxo may provide a sales outlook for its new HIV drug Apretude, extended-release cabotegravir, approved last December on its fourth-quarter earnings call.
Fourth-quarter sales of consumer healthcare business are likely to have continued the recovery momentum from the past two quarters. Glaxo had anticipated more normal consumer trends in the second half of the year.
Glaxo will likely provide an update related to the progress with the demerger of Consumer Healthcare business, following the rejection of Unilever’s (UL - Free Report) acquisition offers. The demerger is anticipated in mid-2022. Please note that Unilever offered to acquire Glaxo’s Consumer Healthcare business for $68 billion in December. Last month, Unilever expressed its unwillingness to raise its bid.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Glaxo this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. The Zacks Consensus Estimate stands at 63 cents per ADS. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Glaxo has a Zacks Rank #3.
GlaxoSmithKline plc Price, Consensus and EPS Surprise
GlaxoSmithKline plc price-consensus-eps-surprise-chart | GlaxoSmithKline plc Quote
Stock to Consider
Here is one large pharma/biotech stock that you may want to consider, as our model shows that it has the right combination of elements to post an earnings beat this season.
Pfizer (PFE - Free Report) has an Earnings ESP of +1.18% and a Zacks Rank #1. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Pfizer’s stock has surged 53% in the past year. Pfizer topped earnings estimates in three of the last four quarters. Pfizer has a four-quarter earnings surprise of 10.85%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.