GlaxoSmithKline’s Q3 2018 Earnings: Analysts’ Estimates



A look at GSK’s earnings

GlaxoSmithKline (GSK) is a leading British multinational pharmaceutical company. It reports its financial results in British pounds and is expected to release its third quarter of 2018 earnings on October 31.

The above chart compares GlaxoSmithKline’s EPS and revenues since the first quarter of 2017 and estimates for the third quarter of 2018. Wall Street analysts estimate EPS of 33.21 pence and revenues of ~8.02 billion pounds for the third quarter of 2018.

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Revenue estimates for the third quarter

Analysts are expecting GSK’s revenues to increase ~2.3% to 8.02 billion pounds for the third quarter of 2018 compared to 7.84 billion pounds for the third quarter of 2017. They estimate growth in operating revenues across all segments.

The growth drivers for GlaxoSmithKline include new respiratory products and HIV[1. human immunodeficiency virus] products in the Pharmaceuticals segment. It also expects growth from the shingles vaccine in the Vaccines segment and oral health and wellness products in the Consumer Health segment.

Profitability estimates

Analysts estimate GSK’s gross profit margin of 69.6% for the third quarter of 2018, a 3.4% growth compared to 66.2% in the third quarter of 2017. Due to the decrease in research and development expenses and lower selling, general, and administrative expenses, its EBITDA margin is expected to be ~36.3% in the third quarter. Its net adjusted income is expected to be ~1.63 billion pounds.

The First Trust Value Line Dividend ETF (FVD) holds 0.5% of its total investments in GlaxoSmithKline (GSK), 0.5% in Pfizer (PFE), 0.5% in Sanofi (SNY), and 0.5% in Bristol-Myers Squibb (BMY).


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