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GSK’s HIV Products Expected to Have Driven 2Q Earnings

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A look at GSK’s earnings

GlaxoSmithKline (GSK) is a British multinational pharmaceutical company and therefore reports its financial results in British pounds. For further details on the company, you can read GlaxoSmithKline: A Must-Read Overview.

GlaxoSmithKline is set to release its 2Q16 earnings on July 27, 2016. Analysts estimate EPS (earnings per share) of 0.42 pounds for 2Q16. Also, GSK’s stock has returned nearly 9.6% over the last 12 months.

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2Q16 revenue estimates

Analysts estimate that revenues for 2Q16 will increase by ~7.8% to 6.4 billion pounds, compared with 5.9 billion pounds in 2Q15. Apart from multiple product launches, the company is focused on the vaccines business acquired from Novartis (NVS) in March 2015.

Key revenue drivers include HIV products in the Pharmaceuticals segment, meningitis and flu vaccines in the Vaccines segment, and Flonase and oral health products in the Consumer Healthcare segment. What can investors expect from 2Q16 earnings? You’ll find out in this series.

Analysts’ recommendations

GlaxoSmithKline’s stock price has increased by nearly 9.6% over the last 12 months, while analysts estimate that the stock has the potential to return 7.3% over the next 12 months. Analysts’ 12-month price target is $46.80 per share, compared with $43.60 per share on July 21, 2016. 29% of analysts recommend to “buy,” while 71% analysts recommend to “hold,” according to Bloomberg. The changes in analysts’ estimates and recommendations are based on the changing trends in the stock price.

GlaxoSmithKline forms about 0.6% of the Vanguard FTSE All-World ex-US ETF (VEU), while Novartis AG (NVS) forms ~1.0%, AstraZeneca (AZN) forms ~0.4%, and Novo Nordisk (NVO) forms ~0.6%.

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