GlaxoSmithKline 3rd-qtr sales and profit exceed expectations

UK pharma major GlaxoSmithKline (LSE: GSK) this morning reported third-quarter 2015 financials showing that total turnover was up 11% year-on-year (+9% in £s) at £6.13 billion ($9.4 billion).

Core operating profit fell 5% (9% £s) to £1.72 billion, with core earnings per share coming in at 23.0 pence, down 13%. This reflects dilution from the $20 billion asset swap transaction with Novartis, offset by accelerated delivery of integration synergies, restructuring benefits and ongoing cost reductions. However, operating profit grew 54% to £1.025 billion, resulting in EPS of 11.1 pence, up 45%. Analysts had expected revenue of £6.1 billion and core operating profit of £1.5 billion. GSK’s shares gained 3.9% to £14.20 by early Wednesday afternoon.

Pharmaceutical sales were £3.3 billion, -7% (+1% pro-forma); Vaccines £1.2 billion, +32% (+13% pro-forma); and Consumer Healthcare £1.6 billion, +55% (+7% pro-forma), GSK noted.