GlaxoSmithKline 1Q Earnings Beat Forecasts; Backs 2020 View

By Ian Walker

GlaxoSmithKline PLC on Wednesday reported market-beating earnings for the first quarter of the year on higher sales, and backed its full-year forecast.

The British pharmaceutical giant made a net profit for the quarter ended March 31 of 1.57 billion pounds ($1.95 billion) compared with GBP830 million for the same period last year, and a consensus of GBP1.04 billion taken from FactSet and based on three analysts' forecasts

Adjusted earnings per share--a metric closely watched by analysts that strips out one-off items--rose 26% when accounting for currency effects, to 37.70 pence, beating analysts' expectations of 30.80 pence, taken from FactSet and based on 10 forecasts.

Pretax profit in the quarter was GBP1.84 billion compared with GBP1.30 billion the year before. Sales increased 19% to GBP9.09 billion, beating a consensus forecast of GBP8.68 billion provided by FactSet.

Looking ahead, the FTSE 100-listed company reiterated that it expects adjusted EPS to decline by between 1% and 4% at constant rates in 2020.

Glaxo has declared a dividend of 19 pence for the quarter and said it expects the payout to remain unchanged at 80 pence a share for the year.

Shares at 1115 GMT were up 7.80 pence, or 0.5%, at 1,695.80 pence.

Write to Ian Walker at [e-mail]; @IanWalk40289749

(END) Dow Jones Newswires

April 29, 2020 07:38 ET (11:38 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.