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GlaxoSmithKline Stock’s June Performance

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A look at GlaxoSmithKline

British multinational pharmaceutical company GlaxoSmithKline (GSK) divides its business into three segments: Pharmaceuticals, Vaccines, and Consumer Healthcare. As it is a British company, it reports its revenue in British pounds. The chart below shows GlaxoSmithKline’s revenue and EPS since Q1 2017, and analysts’ estimate for Q2 2018.

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Analysts’ revenue estimate

Analysts expect GlaxoSmithKline’s revenue to fall 2.2% year-over-year to 7.2 billion pounds in Q2 2018, and for it to see EPS of 0.2604 pounds. GlaxoSmithKline is set to announce its Q2 2018 results on July 25.

GlaxoSmithKline completed the buyout of Novartis’s (NVS) 36.5% stake in their consumer healthcare joint venture for ~$13 billion in June. The transaction was announced on March 27.

Analysts’ recommendations

GlaxoSmithKline stock fell ~1.5% in June but had risen ~14.6% year-to-date as of July 3. Analysts’ 12-month target price of $42.13 implies a ~3.6% return based on the stock’s July 3 price of $40.65.

Of the five analysts tracking GlaxoSmithKline American depositary receipts, one recommends “strong buy” and four recommend “hold.” Of the 28 analysts tracking the stock on the London Stock Exchange, four recommend “strong buy,” seven recommend “buy,” 16 recommend “hold,” and one recommends “sell.” The Invesco BLDRS Developed Markets 100 ADR ETF (ADRD) invests 2.4% of its holdings in GlaxoSmithKline, 4.8% in Novartis, 2.2% in Sanofi (SNY), and 0.5% in Teva Pharmaceutical (TEVA).

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