GLAXF - GSK Q2 Earnings Review: Vaccine Issues Aside A Strong Quarter

2024-07-31 15:38:07 ET

Summary

• UK-based Pharma giant GSK plc reported its Q2 earnings earlier today.
• GSK plc exceeded Q2 2024 expectations with revenue up 13%, operating profit up 18%, and EPS up 17%.
• GSK upgraded full-year guidance with 7-9% top-line growth forecasts, >10% growth in operating profit, and >10% EPS growth.
• Despite vaccine challenges and Zantac litigation, GSK's strong performance and growth opportunities make it undervalued with potential upside.

Investment Overview

I last covered GSK plc ( GSK ), the United Kingdom headquartered Pharma giant, in a note published almost exactly one year ago, reviewing the Pharma's Q2 2023 earnings.

GSK exceeded analysts' expectations that quarter and I gave its stock a "Buy" rating. One year on, the share price is up 7%, or 11% on a total return basis, and Q2 2024 earnings have just been released, so this feels like the right time to provide an update to my thesis....

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