GSK Earnings Prediction
The chart below shows how GSK performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GSK sees a -0.90% change in stock price 10 days leading up to the earnings, and a +1.16% change 10 days following the report. On the earnings day itself, the stock moves by +0.06%. This data can give you a slight idea of what to expect for the next quarter's release.
GSK Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
10.42B
1.05%
4.74%
Gross Margin
71.01%
-2.15%
-3.92%
Operating Margin
29.28%
-7.90%
-0.51%
Net Margin
0.81%
-95.70%
-95.10%
EPS
-0.02
-104.44%
-105.56%
No Data Available
GSK Earnings Analysis
GSK plc American Depositary Shares (Each representing two Ordinary Shares) Corporation (GSK.N) Earnings Conference Call
Positive
Sales and Profit Growth: Despite some challenges, GSK reported a positive quarter with 9% sales growth and 19% profit growth year-to-date.
Quarterly Sales Growth: Sales for the quarter grew 2%, with 9% year-to-date growth, driven by a 19% increase in Specialty Medicines.
Core Profit and EPS Growth: Core operating profit and core EPS both grew 5%, reflecting the positive margin benefit of Specialty Medicines and sustained focus on cost management.
Operating Profit Increase: Year-to-date, operating profit was up 19%, supporting double-digit profit growth for the year.
Operational Cash Generation: Cash generated from operations was GBP 5.3 billion year-to-date, providing increased funds for pipeline investment and returns to shareholders.
Negative
Quarterly Sales Growth Analysis: Sales for the quarter grew only 2%, reflecting a tough comparison with strong growth from Specialty and General Medicines, offsetting lower sales of vaccines.
Operating Profit Decline: Operating profit decreased significantly year-on-year from GBP 1.9 billion last year to GBP 0.2 billion this year, primarily due to a GBP 1.8 billion charge related to the resolution of the Zantac litigation.
Profit Growth Decline: The decline in Gardasil royalties impacted profit growth by minus 8% this quarter, indicating underlying operating profit was only up 13%.
Operating Profit Challenges: Despite a 5% growth in core EPS, excluding COVID, the overall operating profit was significantly affected by the loss of royalties, leading to a challenging outlook for the year.
Vaccine Sales Decline: The overall sales decline of 15% for Vaccines was driven by lower demand for Shingrix and Arexvy, indicating a significant drop in market performance.
GSK FAQs
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GSK Earning Call Sentiment
GSK plc (GSK) Q3 2024 Earnings Call Transcript
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00:00
00:00
GSK.N
-2.25%Positive
The earnings call reveals mixed financial performance, with growth in Specialty Medicines and HIV sales but a decline in Vaccines. Despite a positive core operating margin and improved cash flow, the significant operating profit drop due to litigation is concerning. The Q&A session indicates management's confidence in long-term growth but lacks clarity on key product timelines and sales expectations. The dividend increase is a positive, but overall, the mixed signals and uncertainties lead to a neutral stock price prediction.
