GSK -1.17%
GlaxoSmithKline beats by $0.03, beats on revs
- Reports Q3 (Sep) core earnings of GBP0.32 per share, GBP0.03 better than the Capital IQ Consensus of GBP0.29; revenues rose 23.1% year/year to GBP7.54 bln vs the GBP7.27 bln Capital IQ Consensus.
- Vaccines sales grew 20% to £1,613 million with the US up 23%, Europe up 10% and International up 25%. Growth benefited from increased demand for Fluarix/Flulaval, primarily in the US, and Bexsero in both the US and Europe. 19p dividend declared for Q3. Continue to expect 80p for FY 2016 and 2017. Improved operating leverage driven by sales growth, delivery of restructuring and integration benefits and continued tight control of costs including targeted reinvestments.
- Outlook: The Group aims to improve returns from its R&D innovation by striking a balance between pricing and volume generation. At its Investor Day on 6 May 2015, GSK outlined a series of expectations for its performance over the five-year period 2016-2020. This included an expectation that Group core EPS would grow at a CAGR of mid-to-high single digits on a CER basis. The introduction of a generic alternative to Advair in the US was factored into the Group's assessment of its future performance. The Group also stated it expects to pay an annual ordinary dividend of 80p for each of the years 2015-2017.