GlaxoSmithKline, plc (GSK): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

By
A A A

Summary:
Glaxo's third quarter 2014 earnings were up 5% (CER) to $0.93 per ADS, above the Zacks Consensus Estimate of $0.79. Revenues declined 3% y/y (CER) to $9.4 billion. The company continues to expect 2014 core earnings to be broadly in line (CER) with the year-ago period on an ex-divestment basis. We are concerned about the challenges faced by the company in the form of increasing competition, genericization and pricing pressure. Other factors like weak sales in the U.S., bribery investigations in various regions and supply interruptions in the consumer business will affect results. In view of these challenges, we maintain an Underperform recommendation on the stock.


Overview:

GlaxoSmithKline plc offers pharmaceutical products and other health-related consumer products through two major divisions: Pharmaceuticals and Vaccines (prescription drugs and vaccines) and Consumer Healthcare (over-the-counter (OTC) medicines, oral care products and nutritional health care products). The company has operations in more than 100 countries.

Glaxo has also made several strategic investments in emerging markets in an effort to exploit the higher growth opportunities in these regions. It is also looking towards acquisitions to grow and diversify its business.

In Apr 2014, Glaxo entered into a three part agreement with Novartis under which Glaxo will acquire the latter's vaccines business (excluding flu vaccines), sell off its oncology business and create a consumer healthcare joint venture. The transaction is expected to complete in the first half of 2015.

Pharmaceuticals and Vaccines and Consumer Healthcare contributed 80.4% and 19.6%, respectively, to total revenues in 2013. Total sales for 2013 were 26.5 billion (approximately $41.6 billion).

The company is headquartered in Brentford, UK.


GlaxoSmithKline, plc (GSK): Read the Full Research Report
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report


GLAXOSMITHKLINE (GSK): Free Stock Analysis Report

To read this article on Zacks.com click here.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: Investing , Stocks

Referenced Stocks: GSK

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Top Home Financing Myths
Top Home Financing Myths            

Stocks

Referenced

88%

Most Active by Volume

64,655,493
  • $17.88 ▼ 1.38%
53,363,101
  • $18.51 ▼ 6.98%
42,789,793
  • $94.01 ▼ 1.26%
40,818,762
  • $121.30 ▼ 0.87%
38,086,152
  • $23.28 ▼ 9.17%
36,103,930
  • $14.20 ▼ 0.77%
31,870,696
  • $14.83 ▼ 1.79%
29,019,850
  • $46.70 ▼ 0.38%
As of 7/31/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com