A look at GlaxoSmithKline
In 2Q16, GlaxoSmithKline met Wall Street analysts’ estimates for revenues and EPS (earnings per share). It reported EPS of 26 pence and revenues of 6.5 billion pounds. The stock rose ~2.2% at the closing price of $45.12 on July 27, 2016, compared to the day before.
Stock price performance
According to the data on July 28, 2016, GSK stock has risen 16% over the last 12 months. During the same period, the PowerShares International Dividend Achievers ETF (PID), which holds 2.4% of its total assets in GSK, fell ~8.9% in value. Eli Lilly (LLY) stock fell 0.1%, Merck & Co. (MRK) stock rose 1.8%, and Pfizer (PFE) stock rose ~8%. Investors can refer to the earnings of other companies on our pharmaceutical Earnings Overview page.
GlaxoSmithKline’s top line increased by 10.9% to ~6.5 billion pounds for 2Q16. It was driven by an operational increase of 4% and a favorable currency impact of 6.9%.
The increase in revenues was mainly driven by the addition of Novartis’s Vaccines and Consumer Healthcare products and new pharmaceutical products to its portfolio.
Geographically, US markets contributed nearly 36.2% of total revenues at 2.4 billion pounds for 2Q16. That was a 9% growth at constant exchange rates compared to 2Q15.
The European markets contributed nearly 27.1% of total revenues at 1.8 billion pounds for 2Q16. That was an increase of 3% at constant exchange rates compared to 2Q15.
The contribution from international markets was nearly 36.7% of its total revenues at 2.4 billion pounds for 2Q16. That was a 1% increase in revenues compared to 2Q15. The increase in revenues across all geographical areas is due to the strong performance of new pharmaceutical products, including HIV (human immunodeficiency virus) and vaccine products.