GlaxoSmithKline (GSK) Shares Gap Down on Disappointing Earnings

Shares of GlaxoSmithKline (NYSE:GSK) gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $41.69, but opened at $40.64. GlaxoSmithKline shares last traded at $39.12, with a volume of 5918309 shares changing hands.

The pharmaceutical company reported $0.68 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.70 by ($0.02). The company had revenue of $10.04 billion during the quarter, compared to the consensus estimate of $10.26 billion. GlaxoSmithKline had a net margin of 4.97% and a return on equity of 130.63%.

The business also recently declared a quarterly dividend, which will be paid on Thursday, July 12th. Shareholders of record on Friday, May 11th will be issued a $0.5298 dividend. The ex-dividend date of this dividend is Thursday, May 10th. This represents a $2.12 dividend on an annualized basis and a yield of 5.27%. GlaxoSmithKline’s dividend payout ratio is currently 89.93%.

A number of analysts have recently weighed in on GSK shares. Zacks Investment Research upgraded shares of GlaxoSmithKline from a “hold” rating to a “buy” rating and set a $41.00 target price on the stock in a report on Tuesday, March 6th. Deutsche Bank restated a “neutral” rating on shares of GlaxoSmithKline in a report on Monday, April 9th. TheStreet downgraded shares of GlaxoSmithKline from a “b-” rating to a “c” rating in a report on Wednesday, February 7th. JPMorgan Chase restated a “neutral” rating on shares of GlaxoSmithKline in a report on Monday, January 29th. Finally, BNP Paribas upgraded shares of GlaxoSmithKline from a “neutral” rating to an “outperform” rating in a report on Wednesday, April 4th. One investment analyst has rated the stock with a sell rating, ten have assigned a hold rating and five have given a buy rating to the stock. The stock presently has an average rating of “Hold” and a consensus target price of $40.21.

Institutional investors have recently bought and sold shares of the company. Profund Advisors LLC boosted its stake in shares of GlaxoSmithKline by 3.0% during the 4th quarter. Profund Advisors LLC now owns 52,264 shares of the pharmaceutical company’s stock worth $1,854,000 after purchasing an additional 1,519 shares during the period. Atria Investments LLC boosted its stake in shares of GlaxoSmithKline by 17.1% during the 4th quarter. Atria Investments LLC now owns 12,830 shares of the pharmaceutical company’s stock worth $455,000 after purchasing an additional 1,874 shares during the period. Canandaigua National Bank & Trust Co. boosted its stake in shares of GlaxoSmithKline by 14.6% during the 4th quarter. Canandaigua National Bank & Trust Co. now owns 15,297 shares of the pharmaceutical company’s stock worth $543,000 after purchasing an additional 1,950 shares during the period. Hoertkorn Richard Charles boosted its stake in shares of GlaxoSmithKline by 4.5% during the 4th quarter. Hoertkorn Richard Charles now owns 48,075 shares of the pharmaceutical company’s stock worth $1,705,000 after purchasing an additional 2,050 shares during the period. Finally, IFC Holdings Incorporated FL boosted its stake in shares of GlaxoSmithKline by 15.2% during the 4th quarter. IFC Holdings Incorporated FL now owns 15,744 shares of the pharmaceutical company’s stock worth $560,000 after purchasing an additional 2,079 shares during the period. Hedge funds and other institutional investors own 10.96% of the company’s stock.

The company has a current ratio of 0.60, a quick ratio of 0.39 and a debt-to-equity ratio of 4.09. The company has a market capitalization of $100,764.20, a P/E ratio of 13.96, a PEG ratio of 2.11 and a beta of 0.84.

GlaxoSmithKline Company Profile

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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