Zacks: Brokerages Anticipate GlaxoSmithKline plc (GSK) to Announce $0.70 EPS

Analysts predict that GlaxoSmithKline plc (NYSE:GSK) will report earnings per share of $0.70 for the current quarter, Zacks reports. Two analysts have made estimates for GlaxoSmithKline’s earnings. The highest EPS estimate is $0.73 and the lowest is $0.67. GlaxoSmithKline posted earnings of $0.72 per share in the same quarter last year, which would suggest a negative year over year growth rate of 2.8%. The business is expected to issue its next quarterly earnings results on Wednesday, February 6th.

On average, analysts expect that GlaxoSmithKline will report full year earnings of $2.96 per share for the current fiscal year, with EPS estimates ranging from $2.90 to $3.03. For the next fiscal year, analysts forecast that the firm will post earnings of $2.86 per share, with EPS estimates ranging from $2.62 to $3.08. Zacks Investment Research’s EPS averages are an average based on a survey of sell-side analysts that that provide coverage for GlaxoSmithKline.

GlaxoSmithKline (NYSE:GSK) last released its quarterly earnings results on Wednesday, October 31st. The pharmaceutical company reported $0.83 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.86 by ($0.03). The company had revenue of $9.41 billion for the quarter, compared to the consensus estimate of $10.55 billion. GlaxoSmithKline had a return on equity of 164.99% and a net margin of 5.78%.

GSK has been the subject of several recent analyst reports. Zacks Investment Research upgraded GlaxoSmithKline from a “hold” rating to a “buy” rating and set a $45.00 price target for the company in a research note on Wednesday, November 28th. Goldman Sachs Group restated a “buy” rating on shares of GlaxoSmithKline in a research note on Wednesday, October 10th. Jefferies Financial Group restated a “buy” rating and set a $45.00 target price on shares of GlaxoSmithKline in a research note on Tuesday, December 11th. Barclays downgraded GlaxoSmithKline from an “overweight” rating to an “equal weight” rating and set a $36.95 target price for the company. in a research note on Tuesday, December 4th. Finally, ValuEngine upgraded GlaxoSmithKline from a “sell” rating to a “hold” rating in a research note on Friday, October 19th. Two research analysts have rated the stock with a sell rating, thirteen have given a hold rating and six have issued a buy rating to the stock. GlaxoSmithKline currently has a consensus rating of “Hold” and an average price target of $41.71.

Shares of GSK traded down $0.84 during trading hours on Wednesday, hitting $38.54. 193,436 shares of the company were exchanged, compared to its average volume of 2,922,875. The company has a market cap of $97.24 billion, a PE ratio of 13.35, a price-to-earnings-growth ratio of 1.95 and a beta of 0.83. GlaxoSmithKline has a 52 week low of $34.89 and a 52 week high of $42.36. The company has a debt-to-equity ratio of 6.66, a quick ratio of 0.63 and a current ratio of 0.95.

The firm also recently announced a quarterly dividend, which was paid on Thursday, January 10th. Investors of record on Friday, November 16th were paid a dividend of $0.486 per share. This is an increase from GlaxoSmithKline’s previous quarterly dividend of $0.46. The ex-dividend date of this dividend was Thursday, November 15th. This represents a $1.94 annualized dividend and a yield of 5.04%. GlaxoSmithKline’s dividend payout ratio is presently 66.67%.

Institutional investors have recently bought and sold shares of the business. BlackRock Inc. raised its holdings in GlaxoSmithKline by 23.6% in the 2nd quarter. BlackRock Inc. now owns 1,577,096 shares of the pharmaceutical company’s stock valued at $63,573,000 after acquiring an additional 301,154 shares in the last quarter. Jacobs & Co. CA raised its holdings in GlaxoSmithKline by 14.6% in the 3rd quarter. Jacobs & Co. CA now owns 89,202 shares of the pharmaceutical company’s stock valued at $3,583,000 after acquiring an additional 11,370 shares in the last quarter. Centaurus Financial Inc. raised its holdings in GlaxoSmithKline by 250.2% in the 2nd quarter. Centaurus Financial Inc. now owns 14,096 shares of the pharmaceutical company’s stock valued at $568,000 after acquiring an additional 10,071 shares in the last quarter. Calton & Associates Inc. raised its holdings in GlaxoSmithKline by 16.3% in the 3rd quarter. Calton & Associates Inc. now owns 10,932 shares of the pharmaceutical company’s stock valued at $439,000 after acquiring an additional 1,535 shares in the last quarter. Finally, Old Port Advisors acquired a new position in GlaxoSmithKline in the 2nd quarter valued at approximately $2,710,000. 10.96% of the stock is owned by hedge funds and other institutional investors.

About GlaxoSmithKline

GlaxoSmithKline plc engages in the creation, discovery, development, manufacture, and marketing of vaccines, over-the-counter medicines, and health-related consumer products worldwide. It operates through four segments: Pharmaceuticals, Pharmaceuticals R&D, Vaccines, and Consumer Healthcare. The company offers pharmaceutical products comprising medicines in the therapeutic areas, such as respiratory, anti-virals, central nervous system, cardiovascular and urogenital, metabolic, anti-bacterials, dermatology, rare diseases, immuno-inflammation, and HIV, as well as vaccines.

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