GlaxoSmithKline 2nd-qtr sales in line with expectations but earnings beat

UK pharma major GlaxoSmithKline (LSE: GSK) saw its shares rise 3.6% to £13.76 after it released second-quarter financials, which recorded an earnings decline, reflecting the restricted company after a $20 billion asset swap with Novartis, that saw it divest its oncology products in exchange for the Swiss giant’s vaccines and a consumer products joint venture.

Sales for the quarter increased 6% to £5.89 billion ($9.15 billion), in line with analysts’ expectations of £5.87. However, core earnings per share of 17.3 pence, down 9% in sterling and flat at constant exchange rates, were above the 16.7 pence analysts polled by Reuters had forecast. Core operating profit was down 4% (+3%cc), with reported operating profit down 71% (-61%cc) at £335 million.

Guidance for 2015 and 2016