JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Investing.com -- Shares of GSK jumped more than 3% Wednesday after the company reported a 56% increase in first-quarter earnings per share and a 50% rise in operating profit, boosted by strong sales in its Specialty Medicines unit and stronger-than-expected cash flow.
Revenue for the quarter ended March 31 rose 4% at constant exchange rates to £7.52 billion, compared with £7.36 billion a year earlier.
Core earnings per share climbed 5% to 44.9 pence, while total earnings per share rose to 39.7 pence from 25.7 pence.
GSK’s core operating profit increased 5% to £2.53 billion, driven by favorable product mix, higher royalty income, and continued cost discipline.
Specialty Medicines was the main growth engine, with sales up 17% to £2.93 billion. HIV treatments grew 7%, helped by rising demand for long-acting therapies Cabenuva and Apretude.
Respiratory, immunology and inflammation medicines rose 28%, led by strong demand for Nucala and Benlysta. Oncology sales jumped 53%, fueled by Jemperli and Ojjaara.
“GSK continues to make strong progress, demonstrating the quality, strength and resilience of our portfolio,” chief executive Emma Walmsley said in a statement.
She noted that two of the five U.S. regulatory approvals expected this year had already been secured, and flagged progress on drug launches and pivotal trials.
Vaccine sales fell 6% to £2.1 billion, weighed down by a 57% decline in sales of Arexvy, GSK’s RSV vaccine, due to limited recommendation in the U.S. and lower demand in some international markets.
Shingrix, the company’s shingles vaccine, dropped 7% as growth in Europe was offset by weaker performance in the U.S. and Asia. In contrast, meningitis vaccines rose 20% on strong uptake in Europe.
General Medicines revenue was flat at £2.49 billion. Trelegy, GSK’s once-daily respiratory medicine, grew 15% to £675 million, offsetting declines elsewhere in the portfolio.
By region, Europe delivered the strongest growth, with sales up 11%. The U.S. rose 4%, while international markets declined 2%, impacted by exchange rates and tough year-ago comparisons.
The company generated £1.3 billion in cash from operations, up from £1.13 billion a year earlier, and more than doubled its free cash flow to £697 million. The improvement was attributed to higher operating profit and lower capital expenditures.
GSK maintained its 2025 guidance, forecasting 3% to 5% revenue growth and 6% to 8% growth in both core operating profit and core EPS, all at constant exchange rates.
Specialty Medicines revenue is expected to grow by a low double-digit percentage, while vaccines are projected to decline slightly and General Medicines are seen as broadly stable.
The company declared a first-quarter dividend of 16 pence and said it had repurchased £273 million in shares as part of its £2 billion buyback program.
Amid strong progress in late-stage clinical research and momentum in product launches, GSK remains optimistic about the full-year outlook.