GlaxoSmithKline (GSK) share price: Q2 earnings preview

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GlaxoSmithKline Q2 revenue is expected to show revenue growth from newer drugs partially offset by increased generic competition in older drugs.

Source: Bloomberg

 

Shares GlaxoSmithKline Price Revenue Vaccine Earnings before interest, taxes, depreciation and amortization

 Shaun Murison | Senior Market Analyst, Johannesburg | Publication date: Tuesday 27 July 2021 

When is GlaxoSmithKline earnings date?

The GlaxoSmithKline (GSK) earnings release date is scheduled for the 28 July 2021. The scheduled results will cover the groups second quarter and half-year earnings.

 

GSK results preview: What does the street expect?

While GlaxoSmithKline (in partnership with Sanofi Pasteur) look to stage three trials of their Covid-19 vaccine, the company has not yet released a vaccine to market. The global rollout of Covid-19 vaccines (by competitors) looks to have disrupted the course of other vaccine programmes in key markets such as the US and the UK for GSK.

Revenue for second quarter (Q2) 2021 is expected to be bolstered by sales of newer drugs in the respiratory and HIV segments, with a partial offset from older drugs which are finding increased competition through generic offerings.

In terms of the upcoming results, a mean of analyst estimates compiled by Refinitiv data arrive at the following:

• Revenue $10.433 billion (+10.27%) year on year (YoY)
• Earnings before interest tax depreciation amortisation (EBITDA) $2.855 billion (-8.91% YoY)
• Earnings per share (EPS) $0.51 (+10.87% YoY)

How to trade the GlaxoSmithKline results

 

Source: Refinitiv

 

A Refinitiv poll of analyst ratings arrive have a long term consensus rating of ‘buy’ for GlaxoSmithKline with a target price $47.87.

GlaxoSmithKline (ADR) share price: technical analysis

 

Source: IG

The share price of GlaxoSmithKline continues to trade in an uptrend which has been in place since the beginning of March 2021. The price has however started to correct from near term highs.

The correction sees the price now testing support at the 38.85 level. Traders looking for long entry might prefer to see a bullish price reversal around current levels accompanied by a sharper move out of oversold territory by the Stochastic oscillator. In this scenario, the recent high at 40.55 would become the initial resistance target, while a close below 38.35 could be used as a stop loss consideration for the trade.

However should a bullish price reversal not manifest and we see the price move to close below both the 38.85 and 38.35 support levels, this could instead be a suggestion that the uptrend has failed and perhaps a new downtrend for the share price is forming.

In Summary

• GSK reports Q2 2021 results on the 28 July
• Q2 revenue of $10.433 billion (+10.27% YoY) is expected
• Q2 EBITDA of $2.855 billion (-8.91% YoY) are expected
• EPS $0.51 (+10.87% YoY) in the Q2 are expected
• The average long term broker rating for GSK is a ‘buy’
• The share price of GSK is testing support as it finds itself in a short-term correction of a longer-term uptrend