GlaxoSmithKline PLC said fourth-quarter 2017 profit rose year over year
The U.K.-based pharma giant booked £1.52 billion, or 27.2 pence per share, in adjusted earnings, up from £1.45 billion, or 25.5 pence per share, in the same quarter of 2016.
The S&P Capital IQ normalized EPS estimate for the quarter was 26 pence.
The company generated £7.64 billion in quarterly revenues, up 4% year over year on a currency neutral basis.
On a GAAP basis, the company recorded a loss of £363 million, or 11.2 pence per share, compared to an income of £317 million, or 5.3 pence per share, in the year-ago quarter.
The company's GAAP earnings were negatively impacted by charges worth £1.63 billion related to the recently implemented U.S. tax reform law.
Full-year results
For full-year 2017, the pharma heavyweight posted adjusted earnings of £6.26 billion, or £1.118 per share, compared to £5.53 billion, or £1.006 per share, in 2016.
The S&P Capital IQ normalized EPS estimate for the year was £1.10.
The company's revenues rose 8% to £30.19 billion from £27.90 billion in 2016.
On a GAAP basis, the company recorded a profit of £2.17 billion, or 31.4 pence per share, up in comparison to £1.06 billion, or 18.8 pence per share, for full-year 2016.
Outlook for 2018
The company expects its 2018 adjusted EPS to grow by 4% to 7% in case no generic competitor for its respiratory drug Advair is launched in 2018.
However, GSK CEO Emma Walmsley does expect a potential generic version of Advair in the US this year. Accounting for the entry of such a rival drug, adjusted EPS could remain flat year over year or drop by up to 3%.
Generic competition would also reduce the U.S. sales of Advair to about £750 million. Advair, which is sold as Seretide in Europe, generated £3.13 billion in global revenues in 2017.
