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Glaxo (GSK) Misses on both Earnings and Revenue in Q1
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GlaxoSmithKline plc (GSK - Free Report) , 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 stiff competition, genericization, pricing pressure and slowing growth in emerging marketsIn 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 posted in-line results in another. Overall, the company has delivered an average positive surprise of 2.12%.
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 Miss: Glaxo reported core earnings of 68 cents per American depositary share, which miss our consensus estimate of 70 cents.
Revenues Miss: Revenues were up 4% year over year at constant exchange rate (CER) to $10 billion (£7.2 billion). Revenues also missed Zacks Consensus Estimate of $10.3 billion.
Key Stats: While sales in Consumer Healthcare and Pharmaceuticals were up 2%, the Vaccines segment increased 13% at CER.
2018 Guidance: Glaxo continues to expect EPS growth of 4-7% at CER in 2018, if no Advair generics are launched this year. However, in the event of introduction of Advair generic in the U.S. market by mid-year, Glaxo expects adjusted EPS to be flat to down 3% year over year at CER.
Share Price Impact: Shares declined almost 3% in pre-market trading.
Check back later for our full write up on GSK earnings report later!
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
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Glaxo (GSK) Misses on both Earnings and Revenue in Q1
GlaxoSmithKline plc (GSK - Free Report) , 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 stiff competition, genericization, pricing pressure and slowing growth in emerging marketsIn 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 posted in-line results in another. Overall, the company has delivered an average positive surprise of 2.12%.
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 Miss: Glaxo reported core earnings of 68 cents per American depositary share, which miss our consensus estimate of 70 cents.
Revenues Miss: Revenues were up 4% year over year at constant exchange rate (CER) to $10 billion (£7.2 billion). Revenues also missed Zacks Consensus Estimate of $10.3 billion.
Key Stats: While sales in Consumer Healthcare and Pharmaceuticals were up 2%, the Vaccines segment increased 13% at CER.
2018 Guidance: Glaxo continues to expect EPS growth of 4-7% at CER in 2018, if no Advair generics are launched this year. However, in the event of introduction of Advair generic in the U.S. market by mid-year, Glaxo expects adjusted EPS to be flat to down 3% year over year at CER.
Share Price Impact: Shares declined almost 3% in pre-market trading.
Check back later for our full write up on GSK earnings report later!
GlaxoSmithKline plc Price and EPS Surprise
GlaxoSmithKline plc Price and EPS Surprise | GlaxoSmithKline plc Quote
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>