A look at GSK’s earnings
GlaxoSmithKline (GSK) is set to release its 1Q18 earnings on April 25, 2018. The below chart shows the company’s revenues and earnings per share (or EPS) since 1Q17 and analysts’ estimates for 1Q18. Analysts estimate the company will post EPS of 24.21 pence on revenues of 7.2 billion pounds in 1Q18.
1Q18 revenue estimates
Analysts predict revenues will decrease ~2.2% to 7.2 billion pounds in 1Q18 compared to 7.4 billion pounds for 1Q17. The decrease in revenues is expected to be driven by the impact of divestitures and the negative impact of foreign exchange partially due to lower sales of products like Seretide/Advair, established vaccines, and skin care products. The decrease in revenues will be substantially offset by strong sales of new pharmaceutical products and vaccines across both US and outside US markets.
However, analysts expect GSK to report growth in operating revenues. Its key revenue drivers include HIV products like Tivicay and Triumeq in the pharmaceuticals segment, meningitis vaccines in the vaccines segment, and oral health products and wellness products in the consumer health segment.
Analysts predict a profit margin of 69.8% for 1Q18, a marginal decrease as compared to the gross profit margin of 69.9% in 1Q17. Also, due to the increase in R&D (research and development) expenses, and higher selling, general, and administrative expenses as a percentage of total revenues, the EBITDA margin is expected to increase to 32.2% in 1Q18 as compared to 31.2% in 1Q17. The net adjusted income is expected to be ~1.2 billion pounds in 1Q18.
The First Trust Value Line Dividend ETF (FVD) holds ~5.9% of its total investments in healthcare companies. FVD holds 0.5% in GlaxoSmithKline (GSK), 0.6% in Merck (MRK), 0.5% in Eli Lilly (LLY), and 0.5% in Pfizer (PFE).
Check out all the data we have added to our quote pages. Now you can get a valuation snapshot, earnings and revenue estimates, and historical data as well as dividend info. Take a look!