GlaxoSmithKline back on track for core growth, as 4th-qtr beats expectations

UK pharma major GlaxoSmithKline (LSE: GSK) today post financials that beat analysts’ forecasts and suggest the company, which is suffering from patent expirations, is back on track for core growth. GSK’s shares moved up 2.07% to £14.555 by 12.42 GMT.

For the fourth quarter of 2015, group turnover came in at £6.286 billion ($9.03 billion), a rise of 4% at constant exchange rates (+2% in £), beating consensus forecasts of analysts polled by Thomson Reuters of £6.256 billion. Core operating profit was £1.36billion, down 18% at CER, with core earnings per share of 18.1 pence (-28% CER) versus 17.9 pence consensus expectations.

At CER, full-year 2005 turnover grew 6% to £23.92 billion, with core operating profit down 9% at £5.73 billion and core EPS 15% lower at 75.7 pence. Pharmaceutical sales declined 7% to £14.2 billion, while vaccine revenues grew 19% to £3.7 billion and consumer health sales leapt 44% to £6.0 billion. For 2016, GSK says it continues to expect core EPS percentage growth to reach double-digits on a constant currency basis.