We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
GSK Gears Up to Report Q1 Earnings: What's in the Cards?
Read MoreHide Full Article
GSK plc. (GSK - Free Report) will report first-quarter 2023 results on Apr 26, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 8.47%.
Shares of GSK have outperformed the industry in the year so far. The stock has gained 3.8% against the industry’s 4.0% decline.
Image Source: Zacks Investment Research
GSK’s earnings surpassed estimates in each of the trailing four quarters, delivering a beat of 14.59% on average.
GSK PLC Sponsored ADR Price, Consensus and EPS Surprise
GSK reports financial figures under three segments — Specialty Medicines, Vaccines and General Medicines.
In the first quarter, higher sales of newer specialty products like Dovato, Nucala, Trelegy Ellipta, Shingrix, Bexsero and Juluca are likely to have been offset by the decline in sales of older HIV drugs and respiratory medicines due to generic erosion and competitive pressure. Our model suggests the Respiratory sales to be around £1.60 billion for the quarter.
In HIV, the competitive environment and the shift in portfolio toward two-drug regimens might have dented sales of three-drug regimens — Tivicay and Triumeq — and older HIV drugs. Nevertheless, the strong growth trend witnessed in recent quarters in sales of the two-drug regimens, Juluca and Dovato, might have offset the losses in sales of the three-drug regimens during the to-be-reported quarter. Our model estimates sales from the HIV portfolio to stand at £1.33 billion for the quarter, suggesting a 12.5% rise from the year-ago quarter’s levels.
Sales of COPD inhaler Trelegy Ellipta are likely to have been an important contributor to first-quarter 2023 sales. Our model suggests the drug’s sales to be around £429 million. We expect the inhaler’s U.S. sales to have been a significant contributor to the upside.
GSK’s key vaccine, Shingrix’s sales showed a strong demand recovery in the United States, which — coupled with new launches in different countries — benefitted sales in second-half 2022. We expect this rising trend to have continued in the first quarter. Our model predicts shingles vaccine sales to be around £856 million.
Sales of meningitis and influenza vaccines have shown a strong recovery in recent quarters on the back of CDC purchases in the United States. This trend is likely to have continued in the first quarter. Our model suggests meningitis vaccine sales (including Bexsero) to be around £329 million, while influenza vaccine sales are expected around £28 million.
Oncology sales, comprising Zejula and Jemperli, are also likely to have witnessed growth. The uptake trend of the new multiple myeloma treatment drug Blenrep remains to be seen. Our model suggests that the Oncology portfolio is likely to have generated around £134 million in sales.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for GSK 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, which is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: GSK has an Earnings ESP of 0.00% as the Most Accurate Estimate and Zacks Consensus Estimate stand at earnings of 88 cents per ADR.
Here are some biotech stocks that have the right combination of elements to beat on earnings this time around:
Amarin Corporation (AMRN - Free Report) has an Earnings ESP of +100.00% and a Zacks Rank #3.
Amarin’s stock has surged 12.4% in the year-to-date period. Amarin beat earnings estimates in two of the last four quarters while missing the mark on the other two occasions. Amarin reported a negative earnings surprise of 14.29%, on average. The company will report its first-quarter results on May 3, before the opening bell.
CRISPR Therapeutics (CRSP - Free Report) has an Earnings ESP of +51.77% and a Zacks Rank #2.
In the year so far, CRISPR Therapeutics’ stock has risen 22.7%. CRISPR Therapeutics beat earnings estimates in two of the last four quarters while missing the mark on the other two occasions. CRISPR Therapeutics delivered an earnings surprise of 3.19%, on average.
2seventy bio (TSVT - Free Report) has an Earnings ESP of +4.39% and a Zacks Rank #3.
In the year so far, 2seventy bio’s shares have declined 8.9%. TSVT beat earnings estimates in two of the last four quarters while missing the mark on the other two occasions. The company reported a negative earnings surprise of 5.62%, on average.
Image: Bigstock
GSK Gears Up to Report Q1 Earnings: What's in the Cards?
GSK plc. (GSK - Free Report) will report first-quarter 2023 results on Apr 26, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 8.47%.
Shares of GSK have outperformed the industry in the year so far. The stock has gained 3.8% against the industry’s 4.0% decline.
Image Source: Zacks Investment Research
GSK’s earnings surpassed estimates in each of the trailing four quarters, delivering a beat of 14.59% on average.
GSK PLC Sponsored ADR Price, Consensus and EPS Surprise
GSK PLC Sponsored ADR price-consensus-eps-surprise-chart | GSK PLC Sponsored ADR Quote
Factors to Note
GSK reports financial figures under three segments — Specialty Medicines, Vaccines and General Medicines.
In the first quarter, higher sales of newer specialty products like Dovato, Nucala, Trelegy Ellipta, Shingrix, Bexsero and Juluca are likely to have been offset by the decline in sales of older HIV drugs and respiratory medicines due to generic erosion and competitive pressure. Our model suggests the Respiratory sales to be around £1.60 billion for the quarter.
In HIV, the competitive environment and the shift in portfolio toward two-drug regimens might have dented sales of three-drug regimens — Tivicay and Triumeq — and older HIV drugs. Nevertheless, the strong growth trend witnessed in recent quarters in sales of the two-drug regimens, Juluca and Dovato, might have offset the losses in sales of the three-drug regimens during the to-be-reported quarter. Our model estimates sales from the HIV portfolio to stand at £1.33 billion for the quarter, suggesting a 12.5% rise from the year-ago quarter’s levels.
Sales of COPD inhaler Trelegy Ellipta are likely to have been an important contributor to first-quarter 2023 sales. Our model suggests the drug’s sales to be around £429 million. We expect the inhaler’s U.S. sales to have been a significant contributor to the upside.
GSK’s key vaccine, Shingrix’s sales showed a strong demand recovery in the United States, which — coupled with new launches in different countries — benefitted sales in second-half 2022. We expect this rising trend to have continued in the first quarter. Our model predicts shingles vaccine sales to be around £856 million.
Sales of meningitis and influenza vaccines have shown a strong recovery in recent quarters on the back of CDC purchases in the United States. This trend is likely to have continued in the first quarter. Our model suggests meningitis vaccine sales (including Bexsero) to be around £329 million, while influenza vaccine sales are expected around £28 million.
Oncology sales, comprising Zejula and Jemperli, are also likely to have witnessed growth. The uptake trend of the new multiple myeloma treatment drug Blenrep remains to be seen. Our model suggests that the Oncology portfolio is likely to have generated around £134 million in sales.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for GSK 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, which is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: GSK has an Earnings ESP of 0.00% as the Most Accurate Estimate and Zacks Consensus Estimate stand at earnings of 88 cents per ADR.
Zacks Rank: GSK currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some biotech stocks that have the right combination of elements to beat on earnings this time around:
Amarin Corporation (AMRN - Free Report) has an Earnings ESP of +100.00% and a Zacks Rank #3.
Amarin’s stock has surged 12.4% in the year-to-date period. Amarin beat earnings estimates in two of the last four quarters while missing the mark on the other two occasions. Amarin reported a negative earnings surprise of 14.29%, on average. The company will report its first-quarter results on May 3, before the opening bell.
CRISPR Therapeutics (CRSP - Free Report) has an Earnings ESP of +51.77% and a Zacks Rank #2.
In the year so far, CRISPR Therapeutics’ stock has risen 22.7%. CRISPR Therapeutics beat earnings estimates in two of the last four quarters while missing the mark on the other two occasions. CRISPR Therapeutics delivered an earnings surprise of 3.19%, on average.
2seventy bio (TSVT - Free Report) has an Earnings ESP of +4.39% and a Zacks Rank #3.
In the year so far, 2seventy bio’s shares have declined 8.9%. TSVT beat earnings estimates in two of the last four quarters while missing the mark on the other two occasions. The company reported a negative earnings surprise of 5.62%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.