Shares in GlaxoSmithKline (LON:GSK) have jumped in London in early afternoon trade as the blue-chip drugmaker posted a rise in sales and earnings for the third-quarter of the year. The company further revised its full-year guidance, having seen strong demand for its new shingles vaccine.
As pf 12:32 BST, GSK’s share price had added 2.56 percent to 1,577.00p, outperforming the broader market rally which has seen the benchmark FTSE 100 index gain 1.61 percent to 7,149.29 points. The group’s shares have added just under 16 percent to their value over the past year, as compared with about a 4.6-percent gain in the Footsie.
GSK posts Q3 results
GSK announced in a statement today that its sales had climbed three percent at actual exchange rates to £8.1 billion in the third quarter of the year, while the group’s total earnings per share had come in 16 percent higher at 28.8p. The group declared a dividend of 19p for the quarter and said that it now expects full-year adjusted earnings per share growth of between eight and 10 percent at constant exchange rates, regardless of whether a generic competitor to Advair is launched in the US this year.
“GSK has made further good progress this quarter,” the pharmco’s chief executive Emma Walmsley commented in the statement, adding that the group had seen “strong commercial execution for key products and new launches, notably Shingrix, together with an effective focus on cost control is driving this improved performance”.
Analysts on drugmaker
Credit Suisse reaffirmed its ‘neutral’ stance on GSK this week, without specifying a price target on the shares. According to MarketBeat, the blue-chip group currently has a consensus ‘hold’ rating and an average price target of 1,516.51p.