GSK Q4 Earnings: Revenue And EPS Beat, Initiates $2.5 Billion Stock Buyback, Raises Long-Term Annual Sales Forecast To Over $50 Billion

Zinger Key Points

GSK reported Q4 sales of $10.40B, surpassing estimates of $9.58B, while core EPS of $0.59 beat the consensus of $0.43 despite a 10% decline.
Vaccine sales fell 14% to £2.21B, with Arexvy sales down 70%, while Specialty Medicines grew 14% to £3.29B, and HIV drug revenue rose.
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Wednesday, GSK Plc GSK reported fourth-quarter sales of $10.40 billion (8.12 billion Sterling Pounds), up 1% year-over-year and up 4% on constant currency. The analysts estimated sales of $9.58 billion.

Vaccine sales fell 14% (-11% at constant currency) to 2.21 billion pounds, primarily impacted by lower demand for Arexvy related to a more limited ACIP recommendation in the U.S. and channel inventory consumption compared to launch year stocking in 2023. Arexvy sales reached 158 million pounds, down 70%.

Meningitis vaccines had their strongest year of sales to date, with double-digit growth across all regions of 295 million. Established vaccine sales of 806 million, growing internationally and in the U.S.

Vaccines performance was also adversely impacted due to COVID-19 solution sales and U.S. CDC stockpile replenishments in 2023, each impacting full year growth by 1 percentage point.

Shingrix sales reached 848 million pounds, down 7% (-4% at constant currency).

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Specialty Medicine sales increased 14% to 3.29 billion pounds. HIV drug revenues increased by 11% to 1.97 billion pounds. General Medicines sales rose by 1% to 2.61 billion pounds.

Trelegy (asthma drug) sales reached 669 million pounds, up 14%.

The company reported core EPS of $0.59 (23.2 pence), down 10% in constant currency and 20% on a reported basis, beating the consensus of $0.43.

Stock Buyback: GSK also said it would buy back 2 billion pounds of shares over the next 18 months.

Guidance: GSK expects 2025 sales to grow between 3% and 5%, with core earnings per share growing between 6% and 8%, including the benefit from the share buyback.

Specialty Medicines sales are expected to increase by a low double-digit percent, Vaccine turnover is expected to decrease by a low single-digit percent, and General Medicines are expected to be broadly stable.

The pharma giant boosted its long-term growth outlook and now expects over 40 billion pounds of sales in 2031, up from 38 billion pounds.

The increase reflects the inclusion of Blenrep, the significant phase 3 progress since last year and multiple launch opportunities in the 2025 to 2031 period.

Price Action: At last check on Wednesday, GSK stock was up 6.20% ro $37.01 during the premarket session.

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