GlaxoSmithKline 1Q Missed Expectations on Pharmaceuticals, Vaccines -- Earnings Review

By Cecilia Butini

GlaxoSmithKline PLC reported first-quarter earnings on Wednesday. Here is what you need to know.

SALES: Sales came in at 7.42 billion pounds ($10.32 billion), missing a company-provided consensus that saw them at GBP7.83 billion.

PROFIT: Glaxo's quarterly net profit of GBP1.07 billion also missed a consensus estimate that had it at GBP1.09 billion.

WHAT WE WATCHED:

-PHARMACEUTICALS: Pharmaceuticals sales came in below consensus, largely on HIV drugs Tivicay, Triumeq and Juluca, delivering a 5% miss, analysts at Jefferies say. The miss is on the fact that the first quarter of 2020 benefited strongly from stockpiling, and that was particularly evident in the company's HIV and respiratory portfolios, analysts at Barclays say.

-VACCINES: The division missed sales expectations by 12%, according to Citi analysts, who note that the company's ability to meet its guidance is likely dependent on the rebound of shingles vaccine Shingrix, which declined 47% at constant exchange rates during the quarter. This rebound might be hampered by the need for Covid-19 vaccine boosters in 4Q, given constraints in administering Shingrix in patients who need to prioritize Covid-19 shots

-GUIDANCE: The company backed its outlook as expected. An update is expected on June 23, when the company will outline strategy and growth outlooks from 2022 through 2031, as well as capital allocation priorities.

Write to Cecilia Butini at [e-mail]

(END) Dow Jones Newswires

April 28, 2021 10:28 ET (14:28 GMT)

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