GSK Shares Slide Following Disappointing Quarterly Performance and Revised Vaccine Sales Forecast
The British pharmaceutical leader GSK experiences a 4% drop in premarket trading as it reports quarterly sales below expectations and adjusts its 2025 vaccine sales outlook downward.
HIGHLIGHTS
- GSK's stock declined by 4% in early Wednesday trading after the company revealed quarterly sales figures that fell short of analysts' projections and downgraded its vaccine sales forecast for 2024.
- For the third quarter, GSK reported sales of £8.01 billion ($9.59 billion), marking a 2% decrease year-over-year, primarily due to reduced vaccine revenues and falling slightly below the consensus estimate of £8.09 billion from Visible Alpha analysts.
- The UK-based company, known for vaccines such as Arexvy and Shingrix, now anticipates a low single-digit percentage decline in vaccine sales for 2024, revising its previous expectation of low- to mid-single-digit growth.
Shares of GSK (GSK) dipped 4% in premarket trading on Wednesday following the release of quarterly results that underperformed market expectations, coupled with a lowered forecast for vaccine sales.
The firm's third-quarter revenue totaled £8.01 billion ($9.59 billion), down 2% compared to the same period last year, driven by decreased vaccine sales and falling short of the £8.09 billion consensus estimate from Visible Alpha.
CEO Emma Walmsley commented, "Robust growth in specialty medicines helped counterbalance the decline in vaccine sales, highlighting successful launches in oncology and HIV treatments, alongside the strengthened resilience embedded within GSK's portfolio and operational performance."
Notably, the company’s core earnings per share (EPS) stood at 49.7 pence for the quarter, surpassing the anticipated 30.97 pence.
GSK Revises Vaccine Sales Guidance for 2024
GSK now projects vaccine sales to decline by a low single-digit percentage in 2024, a downward revision from its earlier forecast of low- to mid-single-digit growth. The company’s vaccine lineup includes Arexvy, targeting respiratory syncytial virus, and Shingrix, used for shingles prevention.
Despite this adjustment, GSK maintains its full-year sales growth forecast between 7% and 9%.
Year-to-date, GSK shares have appreciated by approximately 3%.
If you have a news tip for Investopedia reporters, please reach out via email at tips@investopedia.com.
Discover engaging topics and analytical content in Company News as of 04-11-2024. The article titled " GSK Shares Slide Following Disappointing Quarterly Performance and Revised Vaccine Sales Forecast " provides new insights and practical guidance in the Company News field. Each topic is meticulously analyzed to deliver actionable information to readers.
The topic " GSK Shares Slide Following Disappointing Quarterly Performance and Revised Vaccine Sales Forecast " helps you make smarter decisions within the Company News category. All topics on our website are unique and offer valuable content for our audience.