Key Takeaways
- GSK Plc’s U.S.-listed shares surged Wednesday after the pharmaceutical firm boosted its long-term outlook and launched a $2.5 billion stock buyback on the back of optimism about sales of its new drugs.
- The British drugs giant said it expects 2031 revenue to be more than 40 billion pounds.
- GSK’s fourth-quarter core earnings per share and revenue also beat estimates.
GSK Plc’s (GSK) U.S.-listed shares surged Wednesday after the pharmaceutical firm boosted its long-term outlook and launched a stock buyback on the back of optimism about sales of its new drugs.
The British drug maker also reported higher-than-estimated fourth quarter results and sales growth next year.
For 2031, GSK said it sees revenue jumping to more than 40 billion pounds (about $50 billion), above its previous outlook of more than 38 billion pounds (about $47.5 billion) on “late-stage pipeline progress.”
Chief Executive Officer (CEO) Emma Walmsley said the company lifted its 2031 estimate as the company is “increasing and prioritizing R&D investment to promising new long-acting and specialty medicines in Respiratory, Immunology & Inflammation, Oncology and HIV.”
GSK Expects 3%-5% 2025 Revenue Growth
GSK also announced plans for a share buyback program over the next 18 months of 2 billion pounds ($2.5 billion).
The company said it expects 2025 revenue to grow between 3% and 5%, even with vaccine sales likely to fall by a low-single-digit percentage. Analysts surveyed by Visible Alpha were looking for a revenue gain of around 4%.
Its 23.2 pence ($0.29) core earnings per share (EPS) for the fourth quarter and revenue of 8.12 billion pounds also beat estimates.
GSK’s U.S.-listed shares were up around 8% by midday Wednesday.
TradingView
:max_bytes(150000):strip_icc()/GettyImages-2153417526-fc6ade053d5b43638e1d603f627e4b42.jpg?w=1200&resize=1200,0&ssl=1&description=GSK+Stock+Jumps+on+Long-Term+Outlook+Boost%2C+%242.5B+Share+Buyback+Plan){kind=link}