GlaxoSmithKline’s revenue estimates
Analysts expect ~16.5% growth in GlaxoSmithKline’s (GSK) 1Q17 revenues to ~7.3 billion pounds following strong product launches, acquired products from Novartis (NVS), and improvement in the supply chain.
The above chart shows revenues for GlaxoSmithKline over the last eight quarters and estimates for 1Q17. We’ll explore the various factors affecting these expectations for future revenues.
Segment-wise expectations 1Q17
GSK’s business is divided into three business segments:
- Pharmaceuticals segment
- Vaccines segment
- Consumer Healthcare segment
Since the divestment of its oncology products to Novartis in 2015, GSK’s Pharmaceuticals revenues have declined. The major factors impacting the Pharmaceuticals revenues are the decreased sales of blockbuster drugs such as Seretide and Advair.
For 1Q17, the company’s HIV Products, including Triumeq and Tivicay, are expected to drive the growth of the Pharmaceuticals segment, which should be more than offset by lower sales of a few products such as Seretide and Advair.
The revenues from the Vaccines segment are expected to increase in 1Q17, mainly driven by the meningitis vaccines portfolio that was acquired from Novartis in March 2015.
GSK’s Consumer Healthcare revenues are expected to increase in 1Q17, mainly due to increased sales of skin health products, oral health products such as Flonase, and new products under the Sensodyne brand.
For broad-based exposure to this industry, investors can consider the First Trust Value Line 100 ETF (FVL), which holds 0.9% of its total assets in GlaxoSmithKline (GSK). FVL also holds 1.1% of its assets each in Valeant Pharmaceuticals (VRX), Teva Pharmaceuticals (TEVA), and AstraZeneca (AZN).
The Novartis acquisition has improved sales for GSK's Vaccines business, mainly driven by the sales of meningitis vaccines Bexsero in Europe and Menveo in the US and Europe.
After being listed on the NASDAQ (QQQ) on March 29, Lyft (LYFT) stock has traded on a negative note so far.
Coca-Cola (KO) impressed investors with better-than-expected revenue and earnings for the first quarter.
Microsoft (MSFT) announced this month that it had acquired a San Diego startup called Express Logic for an undisclosed amount.
Spirit Airlines is scheduled to report its first-quarter results on April 25. The airline has an impressive record of beating earnings estimates.
On April 23 before the market opened, legacy motorcycle maker Harley-Davidson (HOG) reported its first-quarter earnings results.
Williams Companies (WMB) is scheduled to release its first-quarter earnings on May 1 after the market closes.