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Glaxo (GSK) Beats Earnings and Revenues Estimates in Q4
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GlaxoSmithKline plc (GSK - Free Report) one of the largest health care companies, reshaped its business following the March 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). Glaxo has created a joint venture (“JV”) with Pfizer earlier in 2019, thereby combining their consumer healthcare unit.
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, Glaxo is currently focusing on its core assets and divesting non-core assets.
Meanwhile, like many of its peers, Glaxo is facing challenges in the form of COVID-19 restrictions, stiff competition, genericization and pricing pressure. 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 mixed so far, with the company’s earnings missing expectations in two of the trailing four quarters, while beating the same once and meeting once. Overall, the company has delivered an average positive surprise of 15.28%.
Currently, Glaxo has a Zacks Rank #2 (Buy), 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 Beat: Glaxo reported core earnings of 70 cents per American depositary share in the fourth quarter of 2021, which beat our consensus estimate of 63 cents. Core earnings were up 22% year over year at constant exchange rate (“CER”).
Revenues Beat: Revenues were up 13% year over year at CER to $13 billion (£9.5 billion). Revenues also beat the Zacks Consensus Estimate of $12.62 billion.
Key Stats: Sales in Pharmaceuticals segment increased 25% at CER while Consumer Healthcare sales increased 10%. However, Vaccine sales declined 7% at CER.
2022 Guidance: Glaxo issued guidance for revenues and adjusted earnings in 2022. The company expects to deliver growth of 5% to 7% at CER for revenues. It expects adjusted EPS to increase by 12% to 14% at CER, year over year, in 2022.
Share Price Impact: Shares were down 1.3% in pre-market trading.
Check back later for our full write up on GSK earnings report later!
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Glaxo (GSK) Beats Earnings and Revenues Estimates in Q4
GlaxoSmithKline plc (GSK - Free Report) one of the largest health care companies, reshaped its business following the March 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). Glaxo has created a joint venture (“JV”) with Pfizer earlier in 2019, thereby combining their consumer healthcare unit.
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, Glaxo is currently focusing on its core assets and divesting non-core assets.
Meanwhile, like many of its peers, Glaxo is facing challenges in the form of COVID-19 restrictions, stiff competition, genericization and pricing pressure. 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 mixed so far, with the company’s earnings missing expectations in two of the trailing four quarters, while beating the same once and meeting once. Overall, the company has delivered an average positive surprise of 15.28%.
Currently, Glaxo has a Zacks Rank #2 (Buy), 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 Beat: Glaxo reported core earnings of 70 cents per American depositary share in the fourth quarter of 2021, which beat our consensus estimate of 63 cents. Core earnings were up 22% year over year at constant exchange rate (“CER”).
Revenues Beat: Revenues were up 13% year over year at CER to $13 billion (£9.5 billion). Revenues also beat the Zacks Consensus Estimate of $12.62 billion.
Key Stats: Sales in Pharmaceuticals segment increased 25% at CER while Consumer Healthcare sales increased 10%. However, Vaccine sales declined 7% at CER.
2022 Guidance: Glaxo issued guidance for revenues and adjusted earnings in 2022. The company expects to deliver growth of 5% to 7% at CER for revenues. It expects adjusted EPS to increase by 12% to 14% at CER, year over year, in 2022.
Share Price Impact: Shares were down 1.3% in pre-market trading.
Check back later for our full write up on GSK earnings report later!