GSK Q1 highlights: ‘our results reflect further good momentum’

Image for GSK Q1 financial highlights

Shares of GlaxoSmithKline plc (LON: GSK) are up 3.0% on Wednesday after the pharmaceutical giant reported better-than-expected Q1 results on strong COVID-19 vaccine sales.

GSK Q1 financial highlights

  • At £9.80 billion ($12.3 billion), revenue was up 32% year-over-year.
  • Adjusted per-share earnings jumped 43% YoY to 32.8 pence.
  • Analysts had forecast 30 cents of adjusted EPS on £9.15 billion in sales.
  • Shingles vaccine (Shringrix) sales more than doubled to £698 million.
  • Xevudy (COVID-19 vaccine) generated £1.3 billion versus £1.1 billion expected.
  • Declared 14 pence a share of dividend for the fiscal first quarter.
  • Operating margin stood at 28.6% and free cash flow was £1.70 billion.

Earlier this month, GlaxoSmithKline acquired Vancouver-based Sierra Oncology for $1.90 billion. The stock has now recovered nearly 20% since March 7th.

Future outlook and CEO’s remarks

GSK reiterated its guidance for the full fiscal 2022 on Wednesday at 5.0% to 7.0% increase in sales (constant exchange rates) and up to 14% annualized growth in adjusted operating profit. The outlook doesn’t include COVID-19 solutions.

GlaxoSmithKline is on track to demerge and list Haleon. In the earnings press release, CEO Emma Walmsley said:

We’ve delivered strong Q1 in this landmark year for GSK as we separate Consumer Healthcare and start a new period of sustained growth. Our results reflect further good momentum across specialty medicines and vaccines, and continuing pipeline progress. We also continue to see very good momentum in Consumer Healthcare.

The post GSK Q1 highlights: ‘our results reflect further good momentum’ appeared first on Invezz.

Source: https://invezz.com/news/2022/04/27/gsk-q1-highlights-our-results-reflect-further-good-momentum/