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 for Q3 Earnings: Will It Surpass Estimates?
Read MoreHide Full Article
We expect GSK plc. (GSK - Free Report) to beat expectations when it reports third-quarter 2023 results on Nov 1. In the last reported quarter, the company delivered an earnings surprise of 14.12%.
Factors to Note
GSK reports financial figures under three segments — Specialty Medicines, Vaccines and General Medicines.
In the third quarter, higher sales of newer products like Cabenuva, Juluca, Dovato, Trelegy Ellipta and Shingrix 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 £1.72 billion for the quarter.
In HIV, the strong sales growth trend witnessed in recent quarters of the two-drug regimens, Juluca and Dovato, and long-acting regimens, Cabenuva and Apretude, might have partially 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 be £1.63 billion for the quarter.
Sales of COPD inhalers Trelegy Ellipta and Breo Ellipta are likely to have contributed to third-quarter 2023 sales. Our model suggests Trelegy Ellipta and Breo Ellipta sales to be around £548 million and £292 million, respectively.
GSK’s key vaccine, Shingrix’s, sales showed a strong demand recovery in the United States, which — coupled with new launches in different countries — benefited sales in recent quarters. We expect this trend to have continued in the third quarter. Our model predicts shingles vaccine sales to be around £877 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. The trend is likely to have continued in the third quarter. Our model suggests meningitis vaccine sales (including Bexsero) to be around £446 million, while influenza vaccine sales are expected to be around £289 million.
In May 2023, the FDA approved Arexvy, GSK’s respiratory syncytial virus (RSV) vaccine, to prevent lower respiratory tract disease (LRTD) caused by RSV in older adults. This was the first RSV vaccine for older adults to be approved worldwide. The vaccine was made available during the fall season. We expect the company to generate around £80 million from Arexvy sales.
Oncology sales are likely to have witnessed a decline due to lower Blenrep sales following withdrawal from the U.S. market last November. Our model suggests that the Oncology portfolio is likely to have generated around £123 million in sales.
Key Development in Q3
Last month, the FDA approved GSK’s JAK1/2 inhibitor Ojjaara (momelotinib) to treat intermediate or high-risk myelofibrosis, including primary myelofibrosis or secondary myelofibrosis (post-polycythemia vera and post-essential thrombocythaemia) in adults with anemia.
Following approval, Ojjaara is the first and the only drug approved to treat newly diagnosed and previously treated myelofibrosis patients with anemia in the country.
Earnings Surprise History
GSK’s earnings surpassed estimates in each of the trailing four quarters, delivering a beat of 12.40% on average.
Shares of GSK have outperformed the industry year to date. The stock has gained 1.9% against the industry’s 21.7% decline.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model predicts 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 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 6.79% as the Most Accurate Estimate of $1.14 per ADR is higher than the Zacks Consensus Estimate of $1.07.
Here are some large-cap biotech stocks that have the right combination of elements to beat on earnings this time around:
Amgen (AMGN - Free Report) has an Earnings ESP of +0.63% and a Zacks Rank #3.
Amgen’s stock has risen 4.0% year to date. Amgen beat earnings estimates in all the last four quarters. AMGN delivered a four-quarter earnings surprise of 5.90%, on average. Amgen is scheduled to release its third-quarter results on Oct 31, before market opens.
AstraZeneca (AZN - Free Report) has an Earnings ESP of +5.13% and a Zacks Rank #3.
AstraZeneca’s stock has lost 7.0% year to date. AstraZeneca beat earnings estimates in all the last four quarters. AZN delivered a four-quarter earnings surprise of 8.38%, on average. AstraZeneca is scheduled to release its third-quarter results on Nov 9.
Merck (MRK - Free Report) has an Earnings ESP of +1.73% and a Zacks Rank #3.
Merck’s stock has lost 7.5% year to date. Merck beat earnings estimates in all the last four quarters. MRK delivered a four-quarter earnings surprise of 6.05%, on average. Merck is scheduled to release its third-quarter results on Oct 26, before market opens.
Image: Bigstock
GSK Gears Up for Q3 Earnings: Will It Surpass Estimates?
We expect GSK plc. (GSK - Free Report) to beat expectations when it reports third-quarter 2023 results on Nov 1. In the last reported quarter, the company delivered an earnings surprise of 14.12%.
Factors to Note
GSK reports financial figures under three segments — Specialty Medicines, Vaccines and General Medicines.
In the third quarter, higher sales of newer products like Cabenuva, Juluca, Dovato, Trelegy Ellipta and Shingrix 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 £1.72 billion for the quarter.
In HIV, the strong sales growth trend witnessed in recent quarters of the two-drug regimens, Juluca and Dovato, and long-acting regimens, Cabenuva and Apretude, might have partially 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 be £1.63 billion for the quarter.
Sales of COPD inhalers Trelegy Ellipta and Breo Ellipta are likely to have contributed to third-quarter 2023 sales. Our model suggests Trelegy Ellipta and Breo Ellipta sales to be around £548 million and £292 million, respectively.
GSK’s key vaccine, Shingrix’s, sales showed a strong demand recovery in the United States, which — coupled with new launches in different countries — benefited sales in recent quarters. We expect this trend to have continued in the third quarter. Our model predicts shingles vaccine sales to be around £877 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. The trend is likely to have continued in the third quarter. Our model suggests meningitis vaccine sales (including Bexsero) to be around £446 million, while influenza vaccine sales are expected to be around £289 million.
In May 2023, the FDA approved Arexvy, GSK’s respiratory syncytial virus (RSV) vaccine, to prevent lower respiratory tract disease (LRTD) caused by RSV in older adults. This was the first RSV vaccine for older adults to be approved worldwide. The vaccine was made available during the fall season. We expect the company to generate around £80 million from Arexvy sales.
Oncology sales are likely to have witnessed a decline due to lower Blenrep sales following withdrawal from the U.S. market last November. Our model suggests that the Oncology portfolio is likely to have generated around £123 million in sales.
Key Development in Q3
Last month, the FDA approved GSK’s JAK1/2 inhibitor Ojjaara (momelotinib) to treat intermediate or high-risk myelofibrosis, including primary myelofibrosis or secondary myelofibrosis (post-polycythemia vera and post-essential thrombocythaemia) in adults with anemia.
Following approval, Ojjaara is the first and the only drug approved to treat newly diagnosed and previously treated myelofibrosis patients with anemia in the country.
Earnings Surprise History
GSK’s earnings surpassed estimates in each of the trailing four quarters, delivering a beat of 12.40% on average.
GSK PLC Sponsored ADR Price and EPS Surprise
GSK PLC Sponsored ADR price-eps-surprise | GSK PLC Sponsored ADR Quote
Shares of GSK have outperformed the industry year to date. The stock has gained 1.9% against the industry’s 21.7% decline.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model predicts 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 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 6.79% as the Most Accurate Estimate of $1.14 per ADR is higher than the Zacks Consensus Estimate of $1.07.
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 large-cap biotech stocks that have the right combination of elements to beat on earnings this time around:
Amgen (AMGN - Free Report) has an Earnings ESP of +0.63% and a Zacks Rank #3.
Amgen’s stock has risen 4.0% year to date. Amgen beat earnings estimates in all the last four quarters. AMGN delivered a four-quarter earnings surprise of 5.90%, on average. Amgen is scheduled to release its third-quarter results on Oct 31, before market opens.
AstraZeneca (AZN - Free Report) has an Earnings ESP of +5.13% and a Zacks Rank #3.
AstraZeneca’s stock has lost 7.0% year to date. AstraZeneca beat earnings estimates in all the last four quarters. AZN delivered a four-quarter earnings surprise of 8.38%, on average. AstraZeneca is scheduled to release its third-quarter results on Nov 9.
Merck (MRK - Free Report) has an Earnings ESP of +1.73% and a Zacks Rank #3.
Merck’s stock has lost 7.5% year to date. Merck beat earnings estimates in all the last four quarters. MRK delivered a four-quarter earnings surprise of 6.05%, on average. Merck is scheduled to release its third-quarter results on Oct 26, before market opens.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.