GlaxoSmithKline misses by $0.02, misses on revs; guides FY14 EPS above consensus
Reports Q2 (Jun) earnings of GBP0.19 per share, GBP0.02 worse than the Capital IQ Consensus Estimate of GBP0.21; revenues fell 16.0% year/year to GBP5.56 bln vs the GBP5.73 bln consensus.
- Co issues upside guidance for FY14, sees EPS of similar to 2013 (2013 GBP 1.10 vs. GBP1.01 Capital IQ Consensus Estimate.
- Pharmaceutical and Vaccines sales -4% primarily due to continued increased competition in US respiratory market and generic competition to Lovaza. Strong performance from Emerging Markets (+11%) partially offset declines in Japan (-7%) and the US (-10%). Europe sales flat.
- Emerging Markets Pharmaceuticals and Vaccines turnover increased 11% to GBP 822 million, with Pharmaceuticals up 5% and Vaccines up 26%, reflecting the phasing of tender sales of Synflorix and Rotarix . The ongoing investigation in China adversely impacted Emerging Markets Pharmaceuticals and Vaccines sales growth by an estimated four percentage points. In China, sales excluding Established Products were down 20% to £62 million (including Established Products, down 25% to £129 million). Elsewhere there were strong contributions from Brazil, up 49% to £116 million, and Middle East/North Africa/CIS, up 8% to £211 million. In Emerging Markets Pharmaceuticals, there was continued growth from Oncology products, up 47% and Augmentin , up 11%. Seretide sales were down 4%, in part due to the phasing of shipments, but also the impact of generic copies in some markets.