glaxosmithkline

glaxosmithkline

GSK dark cloud with silver lining - Erlam

2d ago
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GSK DARK CLOUD WITH SILVER LINING - ERLAM GlaxoSmithKline, the UK's niggest drugmaker, said second-quarter earnings missed analyst estimates, sending the shares down more than 2% within seconds of the announcement. Alpari's Market Analyst, Craig Erlam says GSK is a dark cloud with a silver lining. SHOWS: LONDON, ENGLAND, UK (REUTERS - ACCESS ALL) (JULY 23, 2014) 1. ALPARI, MARKET ANALYST, CRAIG ERLAM, SAYING: JOURNALIST ASKING CRAIG ERLAM: "Craig, analysts were already expecting disappointing numbers but were these numbers worse than you expected?" CRAIG ERLAM: "Well I think they were the worst than everyone was expecting. They were worst in terms of earnings and revenues as well. So I think all in all, it's not a real surprise to see that the shares are down more than 2% already because all in all, they are pretty disappointing numbers. But I think there are a few bright points in there as well. We saw that the dividends have risen by 6% to 19p a share. We've also seen things like the emerging markets story still looking good. We saw an 11% increase in the emerging markets sales. So I think there are a few bright spots in there but I think overall, the headline figures that you're going to see is going to be surprisingly poor earnings and revenue numbers which is why we are seeing the numbers - which is why we're seeing the stock struggling shortly after the release." JOURNALIST: "Craig, Glaxo also saying that they expect to maintain respiratory leadership position well into the next decade. Do you think this is fair given that Advair sales are under pressure, their new drug Breo is also seeing slower uptake than expected?" CRAIG ERLAM: "Well I think it's fair and at the end of the day, this is an area which they've been a leader in for quite awhile now. So I think it is fair. Yes, we are seeing slower sales than the company was hoping for and given the fact this is such a key area for the company, this is an area that investors are going to be concerned about. But the company seems very confident and li...