GSK (NYSE:GSK) has raised its sales and earnings projections for the year after strong performances by its HIV and cancer drugs boosted second-quarter sales.
The company reported a 13% year-over-year increase in sales, reaching 7.88 billion British pounds ($10.12 billion), which surpassed analysts’ estimates.
Strong Performance Across Product Lines
Chief Executive Officer Emma Walmsley highlighted that Q2 sales grew across all areas, with Specialty Medicines benefiting particularly from new product launches in oncology and HIV. GSK also secured approvals or filings for 10 major opportunities and reported positive data from seven Phase III trials.
Updated Sales and Earnings Projections
GSK expects sales growth of 7% to 9% for the year, an increase from its previous forecast of 5% to 7%. The company also anticipates a rise in core operating profit between 11% and 13%, up from 9% to 11%, and core earnings per share (EPS) growth is now projected to be 10% to 12%, improved from 8% to 10%.
However, GSK has revised its vaccine sales outlook, now expecting a low- to mid-single-digit percentage increase, down from the previous high-single-digit to low-double-digit percentage increase.
Guidance Upgrades from Industry Peers
The guidance lift follows similar moves by Pfizer (NYSE:PFE) and AstraZeneca (NYSE:AZN). On Tuesday, Pfizer also exceeded second-quarter revenue expectations and raised its full-year guidance. Last week, AstraZeneca posted better-than-expected Q2 results and updated its full-year forecast upward due to rising revenue.
Despite the positive outlook, GSK’s American depositary receipts (ADRs) were down 2% about 45 minutes before the market opened on Wednesday.
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Author Faith Yakubu 
