Markets
GSK

Glaxo (GSK) Beats Q3 Earnings, Revenues Rise Y/Y

Highs and Lows Digital Stock Graph

GlaxoSmithKline plcGSK , 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.

This 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 increasing competition, genericization and pricing pressure in major markets.

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 pretty good so far, with the company's earnings beating expectations thrice in the four trailing quarters. Overall, the company has delivered an average positive surprise of 11.59%.

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: Glaxo reported core earnings of 85 cents per American depositary share, beating our consensus estimate of 77 cents.

Revenues: Revenues were up 8% year over year at constant exchange rate (CER).

Key Stats: Sales in the quarter were driven by strong performance across all three business segments. The Consumer Healthcare and Vaccines segments were up 5% and 20%, respectively. The Pharmaceuticals segment was also up 6% at CER.

2016 Guidance: Glaxo has reiterated its guidance for 2016. At CER, the company expects core earnings growth of 11-12%.

GLAXOSMITHKLINE Price

GLAXOSMITHKLINE Price | GLAXOSMITHKLINE Quote

Check back later for our full write up on this Glaxo's earnings report later!

Confidential from Zacks

Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>

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 Nasdaq, Inc.


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

In This Story

GSK

Other Topics

Earnings Investing Stocks

Latest Markets Videos