--> +4%
GlaxoSmithKline reports EPS in-line, revs in-line; provides FY15 and FY16 guidance
Reports Q2 (Jun) core earnings of GBP0.17 per share, in-line with the Capital IQ Consensus Estimate of GBP0.17; revenues rose 5.9% year/year to GBP5.89 bln vs the GBP5.88 bln consensus.
- FY15 Guidance: Core EPS for 2015 is expected to decline at a percentage rate in the high teens (Capital IQ consensus -16%) primarily due to continued pricing pressure on Seretide/Advair in US/Europe, the dilutive effect of the Novartis transaction and the inherited cost base of the Novartis businesses.
- FY16 Guidance: In 2016, GSK expects to see a significant recovery in core EPS with percentage growth expected to reach double digits on a CER basis as the adverse impacts seen in 2015 diminish and the sales and synergy benefits of the Novartis transaction contribute more meaningfully.
