GlaxoSmithKline PLCs (LON:GSK) shares headed to their highest levels in 17 years on Wednesday after the drugmaker upgraded its full-year earnings forecasts following solid third-quarter sales.
The FTSE 100 firm now expects its adjusted earnings per share (EPS) for 2019 will be “around flat” year-on-year, an upgrade from previous guidance in July which had expected an overall EPS decline of between 3% and 5%.
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The company added that its dividend for 2019 will be maintained at 80p per share.
GSK said the new forecast reflected its operating performance across the first nine months of the year, increased investment in research & development (R&D) and a lower expected tax rate for the year.
The more positive outlook accompanied results for the third quarter which showed a 10% increase in adjusted operating profit to £2.8bn, while revenues jumped 16% to £9.4bn.
Sales of the firms Shingrix shingles vaccine jumped 87% to £535mln thanks to “continued strong execution in the US”, while sales in its respiratory and HIV divisions increased 25% to £806mln and 5% to £1.3bn respectively.
Emma Walmsley, Glaxos chief executive, said the company had also continued to strengthen its pipeline by advancing R&D for products in its RespiratoRead More – Source
