GSK Stock Drops as UK Firm Posts Underwhelming Results

KEY TAKEAWAYS

• GSK's shares are falling 4% in premarket trading Wednesday after the British pharma giant posted lower-than-estimated quarterly sales and lowered its projection for vaccine sales.
• The company reported third-quarter sales of 8.01 billion pounds ($9.59 billion), down 2% year-over-year on lower vaccine sales and below consensus estimates of analysts polled by Visible Alpha of 8.09 billion pounds.
• The U.K. firm, whose vaccines include Arexvy and Shingrix, now expects 2024 vaccine sales to decrease by a low-single digit percentage.

GSK's (GSK) shares are falling 4% in premarket trading Wednesday after the British pharma giant posted lower-than-estimated quarterly sales and lowered its projection for vaccine sales.

The company reported third-quarter sales of 8.01 billion pounds ($9.59 billion), down 2% year-over-year on lower vaccine sales and below consensus estimates of analysts polled by Visible Alpha of 8.09 billion pounds.

“Strong growth in specialty medicines helped to offset lower vaccine sales and reflected successful new product launches in oncology and HIV, as well as the resilience we have now built into GSK’s portfolio and performance,” Chief Executive Officer (CEO) Emma Walmsley said.

Its 49.7 pence core earnings per share (EPS) for the quarter beat estimates of 30.97 pence, however.

GSK Drops Vaccine Sales Outlook for 2024

The U.K. firm now expects 2024 vaccine sales to decrease by a low-single digit percentage versus a low- to mid-single digit percentage growth previously. GSK's vaccines include Arexvy, a medicine that treats respiratory syncytial virus and shingles medicine Shingrix.

GSK reiterated that it expects full-year sales growth of 7% to 9%.

GSK's shares are up 3% this year.

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