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Glaxo (GSK) Miss Earnings and Revenues Estimates in Q1
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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 beating expectations in two of the trailing four quarters, while missing the same twice. Overall, the company has delivered an average positive surprise of 6.82%.
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 59 cents per American depositary share in the first quarter of 2021, which missed our consensus estimate of 63 cents. Core earnings were down 33% year over year at constant exchange rate (“CER”).
Revenues Miss:Revenues were down 15% year over year at CER to $10.21 billion (£7.42 billion). Revenues also missed the Zacks Consensus Estimate of $10.66 billion.
Key Stats:Sales in Vaccines segment decreased 30% at CER while Consumer Healthcare sales decreased 16%. Pharmaceuticals sales were also down 8% at CER. The Respiratory segment increased 24% at CER. HIV product sales were down 11% at CER. Shingrix sales decreased 47% at CER.
2021 Guidance:Glaxo maintained its previous guidance. It expects adjusted EPS to decline by a mid to high-single digit percentage at CER, year over year, in 2021.
Share Price Impact:Shares were down 0.6% in pre-market trading.
Check back later for our full write up on GSK earnings report later!
Zacks Names “Single Best Pick to Double”
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You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Glaxo (GSK) Miss Earnings and Revenues Estimates in Q1
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 beating expectations in two of the trailing four quarters, while missing the same twice. Overall, the company has delivered an average positive surprise of 6.82%.
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 59 cents per American depositary share in the first quarter of 2021, which missed our consensus estimate of 63 cents. Core earnings were down 33% year over year at constant exchange rate (“CER”).
Revenues Miss:Revenues were down 15% year over year at CER to $10.21 billion (£7.42 billion). Revenues also missed the Zacks Consensus Estimate of $10.66 billion.
Key Stats:Sales in Vaccines segment decreased 30% at CER while Consumer Healthcare sales decreased 16%. Pharmaceuticals sales were also down 8% at CER. The Respiratory segment increased 24% at CER. HIV product sales were down 11% at CER. Shingrix sales decreased 47% at CER.
2021 Guidance:Glaxo maintained its previous guidance. It expects adjusted EPS to decline by a mid to high-single digit percentage at CER, year over year, in 2021.
Share Price Impact:Shares were down 0.6% in pre-market trading.
Check back later for our full write up on GSK earnings report later!
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>