28th October 2015
As GlaxoSmithKline reports its third quater results Helal Miah, investment research analyst at The Share Centre, explains what it means for investors…
GlaxoSmithKline has today reported a good set of Q3 results with revenues beating analysts’ expectations. The company said sales were £6.1bn which investors should acknowledge is an increase of 9%, compared to the same period last year. Furthermore and very significantly, the company reported growth in its Pharmaceuticals and Vaccines, Consumer Healthcare and HIV divisions.
The group said that its performance in the quarter reflects continued execution of its strategy and the benefits are becoming evident. Individual drug performances, for example Flonase in its Consumer Healthcare division, contributed to pro-forma sales growth of 7%. GlaxoSmithKline believes that sales of new products are offsetting declines of its Seretide/Advair products. Interested investors should note that the group continues to see progress in R&D innovation, which it believes has potential to drive long-term performance.
We continue to recommend GlaxoSmithKline as a ‘buy’ for lower risk, income seeking investors. The company is demonstrating that its three key priorities, to diversify, deliver more products of value and simplify the operating model are working. As a result, the group has reiterated that it expects to achieve its guidance for the remainder of 2015 and 2016.