GlaxoSmithKline delivers profit beat, but sales disappoint

GlaxoSmithKline stock ticked higher on Wednesday after the British drugmaker beat profit expectations and said progress had been made on plans to split the company into two. GlaxoSmithKline reported turnover of £7.42 billion ($10.26 billion) in the first quarter, a 15% fall on the previous year at constant exchange rates, missing consensus estimates for £7.83 billion. Pre-tax profit fell 9% to £1.52 billion and operating profit declined 8% to £1.69 billion also lower than the Dow Jones consensus. However, adjusted earnings per share (EPS) of 22.9 pence beat the consensus for 21.9 pence. The company confirmed its full-year guidance for mid to high-single digit percentage adjusted EPS decline. Its 2022 outlook also remained unchanged, as the company saw meaningful improvements in revenues and margins. GlaxoSmithKline said it was “on track” to separate into two — a new GSK and a standalone consumer healthcare company in 2022 — and will reveal more details in June.

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