The former GlaxoSmithKline reported better-than-expected results for its third quarter Wednesday, driven by specialty medicines and shingles vaccine Shingrix. The news initially pushed GSK stock to pop, but shares fell along with the market by closing time.
Collectively, sales of specialty medicines ramped 24% higher in constant currency. Meanwhile, Shingrix brought in 760 million pounds in sales — about $874.7 million. As a result, GSK raised its outlook and now expects 8%-10% sales growth, excluding the impact of exchange rates.
"We are again raising our full-year guidance and expect good momentum in 2023, further strengthening our confidence in our performance outlooks, driven by Shingrix global expansion and expected new launches including our new RSV vaccine," Chief Executive Emma Walmsley said in a written statement.
GSK's RSV vaccine would treat respiratory syncytial virus, an illness that generally affects infants and the elderly. Numerous companies are now working on vaccines targeting RSV. Earlier this week, Pfizer unveiled promising results for its RSV vaccine in unborn children.
In early trading on the stock market today, GSK stock jumped but then ultimately slid 1% to close at 33.12. Shares hit a low in late September, but have steadily climbed since then.
GSK Stock: Sales, Earnings Beat Forecasts
Overall, sales climbed 9% on a strict, as-reported basis to 7.83 million pounds. That topped GSK stock analysts' forecast for 7.25 billion pounds, according to FactSet. Based on today's exchange rate, sales came out around $9.01 billion. Adjusted profit also topped expectations.
In addition to strong Shingrix sales, GSK's specialty medicines generated 2.75 billion pounds — about $3.16 billion. Revenue from vaccines and general medicines inched a respective 5% and 1% higher in constant currency.
For the year, GSK expects adjusted operating profit to increase 15%-17%, excluding any contribution from Covid treatments. Per-share earnings are expected to grow about 1% lower than operating profit.
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