2014 tough year for GlaxoSmithKline, but 4th qtr EPS beats forecasts

UK pharma major GlaxoSmithKline (LSE: GSK) saw its shares rise 2.8% to £14.94 shortly after reporting fourth-quarter and full-year 2014 financial results, with sales slightly below expectations but earnings per share well ahead of forecast. The shares, however, were up just 0.8% at £14.65 mid-afternoon.

Group sales for the fourth quarter were £6.19 billion ($9.42 billion), down 8% (-3% at constant exchange rates) from a year earlier. Core EPs fell 6% (-1% at cer) to 27.3 pence. Analysts, on average, had forecast sales of £6.2 billion and core EPS, which excludes certain items, of 25.9 pence, according to Thomson Reuters.

For the full year, turnover came in at £23.01 billion, down 10% (-1% at cer) with core operating profit falling 15% to £6.59 billion and core EPS 12% lower at 95.4 pence. Pharmaceutical and Vaccine sales saw growth in Emerging Markets (+5%), Japan (+1%) and HIV (+15%) partly offsetting US performance (-10%) reflecting challenging trading conditions in primary care market and Established Products (-16%); Europe sales were flat.