Pharmaceutical giant GlaxoSmithKline (GB:GSK) and AstraZeneca (GB:AZN) Analysts are expected to report earnings for the fourth quarter and full year of 2022. On the one hand, the analyst is a little skeptical about GSK’s long-term vision and is waiting for some new updates on research and development. This mitigates these obstacles. AZN, on the other hand, is well-positioned for the future with strong sales growth and a portfolio of drugs that are yet to be approved.
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GlaxoSmithKline is a British pharmaceutical company engaged in developing vaccines and specialty medicines to treat multiple diseases.
The company plans to announce fourth quarter and full year 2022 earnings on Wednesday, February 1, 2023. The consensus forecast for EPS is 0.23p in the fourth quarter compared with 0.26 pence in the same period last year.
The company met and even exceeded its guidance figures in the first three quarters of 2022. Shareholders are expecting similarly strong results, boosted by more investment in R&D. Analysts also expect a stronger push from the vaccines division, as one of his bestsellers, Shingrix, is expected to post his double-digit growth in full-year earnings.
For the full year 2022, the company expects revenue to grow by 8% to 10% and operating profit to grow by 15% to 17%. The company also anticipates his 6% favorable impact of foreign exchange on sales in 2022. In 2021, at constant exchange rates, sales will grow by 5%, while operating profit will decline by 9%.
Analyst Michael Leuchten UBS sees multiple risks to revenue and cost challenges over the long term. He believes Shingrix’s sales will start declining in the US when it reaches its full potential in 2027. This can reach about 20% of the company’s revenue. The minimum target price for Leuchten shares is he 1,245.0p, indicating a 12.23% decline.
Is GSK a good stock to buy?
Both JP Morgan and UBS have recently repeated sell ratings on the stock.
whole, GSK average target price was 1,506.82 pence, 6.23% higher than the current trading level. This stock has a hold rating on TipRanks.
UK-based AstraZeneca is a multinational pharmaceutical company serving millions of patients worldwide. The company has made a lot of headlines for successfully launching its COVID-19 vaccine. Stocks gain momentum, 32% return last year.
AstraZeneca will report fourth quarter and full year 2022 results on February 2, 2023. The company reported that its 2021 sales hit a record 41% growth to reach $37.4 billion. Analysts are bullish on the result given the company’s strong drug pipeline. The company has received about 19 regulatory approvals for its drug in the first half of 2022.
of The consensus forecast for EPS is 1.12pThird-quarter EPS was $1.67 per share, representing 55% growth and beating Wall Street’s expectations.
AstraZeneca has increased its full-year guidance number based on positive data from its pipeline program and increased sales. This month, the company received approval for his Airsupra, the first of its kind to treat asthma in adults. AZN expects annual revenue growth to be in his high double digits over the next two to three years.
AstraZeneca stock price target
Ahead of the fourth quarter results, analysts at Deutsche Bank, Barclays and JP Morgan reaffirmed their buy ratings, while UBS reiterated its reserve rating on the stock.
AstraZeneca shares are rated medium buy, according to TipRanks’ consensus ratings.
of average target price was 11,173 pence, 2.09% below current trading levels.
UK market pharma giants have always been favorites of investors due to their global presence and solid portfolios of medicines. Both GlaxoSmithKline and AstraZeneca see positive numbers in their full 2022 results, but the analyst remains more bullish on AZN.