Pharmaceutical giant GSK on Wednesday beat expectations for the second quarter and raised its forecast for the full year. GSK stock rose after the report.
The U.K.-based company earned the equivalent of $1 a share on sales of $9.23 billion in the June quarter, according to FactSet. GSK reports results in British pounds. Analysts polled by FactSet had expected earnings of 89 cents a share on sales of $8.78 billion. In the year-earlier period, GSK earned 83 cents a share on sales of $8.34 billion.
GSK now expects sales to rise 8% to 10% in 2023, vs. its prior growth target of 6% to 8%. Also, it sees adjusted earnings per share increasing 14% to 17%, vs. its prior goal of 12% to 15% growth. Those growth targets exclude the impact of exchange rates.
"We have delivered another excellent quarter of performance, with strong sales and earnings growth, notably in HIV and vaccines, and continued strengthening of the R&D pipeline and product portfolio," Chief Executive Emma Walmsley said in a news release.
She added, "The approval of Arexvy, the world's first RSV vaccine, was an important milestone for us and is at the forefront of a next wave in vaccine innovation for GSK."
GSK Stock Rises After Report
On the stock market today, GSK stock climbed 0.5% to close at 35.87.
Revenue from GSK's vaccines rose 18% year over year, driven by sales of products for shingles and meningitis.
Sales of specialty medicines fell 7% with growth in HIV treatments and respiratory and oncology drugs helping to offset declines in Covid treatments.
Revenue from GSK's general medicines unit climbed 8% in constant currency thanks to strong sales of its respiratory inhaler Trelegy.
GSK stock ranks last out of six stocks in IBD's Medical-Diversified industry group, according to IBD Stock Checkup. It has middling IBD Composite Rating of 54 out of 99.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
