GlaxoSmithKline 3Q Net Profit Falls, But Beats Forecasts

By Ian Walker

GlaxoSmithKline PLC on Wednesday reported a 20% fall in third-quarter net profit, but still beat market estimates, and backed its full-year forecast.

The British pharmaceutical giant made a net profit of 1.24 billion pounds ($1.62 billion) for the quarter ended Sept. 30, compared with GBP1.55 billion for the same period last year, and a consensus of GBP876.2 million taken from FactSet and based on three analysts' forecasts.

Adjusted earnings per share, a closely watched metric that strips out one-off items, rose 1% when accounting for currency effects, to 35.60 pence from 38.60 pence. It beat analysts' expectations of 30.40 pence, taken from FactSet and based on 12 forecasts.

Sales fell to GBP8.65 billion compared with GBP9.39 billion for the same quarter last year, and a consensus forecast of GBP8.82 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.

Chief Executive Emma Walmsley said the company is "urgently advancing" possible Covid-19 solutions with its partners, including clinical trials for antibody therapy VIR-7831 and three different adjuvanted vaccines.

"We expect to see data on all of these before the end of the year," Ms Walmsley said.

Write to Ian Walker at [e-mail]

(END) Dow Jones Newswires

October 28, 2020 08:39 ET (12:39 GMT)

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