GlaxoSmithKline 4Q Pretax Profit Rose But Sees Falling Earnings in 2020
February 05 2020 - 7:58AM
Dow Jones News
By Carlo Martuscelli
GlaxoSmithKline PLC (GSK.LN) reported rising profit before tax
in the final quarter of the year on Wednesday, but missed analyst
forecasts across several metrics and guided for declining earnings
in the year ahead.
Pretax profit in the fourth quarter was 1.71 billion pounds
($2.22 billion), up from GBP1.37 billion the year before. Sales
increased by 8.6% to GBP8.90 billion, missing a consensus analyst
forecast of GBP9.03 billion provided by FactSet.
Adjusted earnings per share--a metric closely watched by
analysts that strips out one-off items--fell by 16% when accounting
for currency effects, to 24.8 pence, missing analyst forecasts of
30 pence.
The British pharmaceutical major is facing heavy investments
into research as it continues to rebuild its pipeline of cancer
drugs after having divested its oncology portfolio in 2014, as well
as competition to its best-selling inhaler Advair.
Looking ahead, the FTSE 100-listed company said that it expects
adjusted EPS to decline by between 1% and 4% at constant rates in
2020, citing a two-year period of mounting investment in its key
new products.
Glaxo declared a dividend of 80 pence for the year and said it
expects the pay-out to remain unchanged in 2020.
Shares of the company at 1227 GMT traded 2.6% lower at
GBP17.68.
Write to Carlo Martuscelli at carlo.martuscelli@wsj.com;
@carlomartu
(END) Dow Jones Newswires
February 05, 2020 07:43 ET (12:43 GMT)
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