By Ian Walker

 

GlaxoSmithKline PLC on Wednesday reported market-beating earnings for the first quarter of the year, and held its full-year forecast. Here's what you need to know:

 

SALES FORECAST: Glaxo's sales for the first quarter rose 19% to 9.09 billion pounds ($11.30 billion), beating a consensus forecast of GBP8.68 billion provided by FactSet and based on nine analysts' forecasts.

 

NET INCOME: Net income was GBP1.57 billion compared with a consensus of GBP1.04 billion for the quarter, taken from FactSet and based on three analysts' forecasts.

 

ADJUSTED EPS: Adjusted earnings per share--the company's preferred metric which strips out exceptional and other one-off items--rose 26% on a constant exchange rate basis to 37.70 pence, compared with a forecast of 30.80 pence taken from FactSet and based on 10 analysts' forecasts.

 

WHAT WE WATCHED:

 

-2020 ADJUSTED EPS: The pharmaceutical giant reiterated that it expects adjusted EPS to fall 1% to 4% at constant exchange rates. Glaxo said it will update this guidance as more information becomes available.

 

-2020 DIVIDEND: Glaxo kept its quarterly dividend at 19 pence a share, and confirmed that it still intends to pay dividends totaling 80 pence a share for the year--same as in 2019--"subject to any material change in the external environment or performance expectations."

 

-CORONAVIRUS: The company has entered into two separate collaborations--one with Vir Biotechnology Inc. and the other with Sanofi--to develop solutions for coronaviruses. No further updates on these has been provided.

 

Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

 

(END) Dow Jones Newswires

April 29, 2020 09:02 ET (13:02 GMT)

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