GSK stock tumbled early Wednesday, undercutting its 200-day moving average, after revenue from two of its key vaccines widely missed Wall Street's expectations.
Shingles vaccine Shingrix is one of GSK's biggest products. But during the June quarter, sales slipped about 4% to 832 million pounds, or about $1.07 billion. That lagged analysts' projections for $1.33 billion, according to FactSet. The company noted inventory reductions, changes in retail vaccine prioritization and lower demand in the U.S. fed into the Shingrix sales slide.
And, as expected, revenue from RSV vaccine Arexvy declined due to summer seasonality. RSV, the shorthand name for respiratory syncytial virus, causes coldlike symptoms and is dominant in the fall. Sales tumbled sequentially to 62 million pounds, or about $79.5 million and missed views for $105.5 million.
On today's stock market, GSK stock toppled 2.5% to 38.77. Shares fell below their 200-day line, according to MarketSurge.
GSK Stock: Raised Outlook
Across all products, GSK's sales climbed 13% to 7.9 billion pounds. That translates to about $10.11 billion and tops forecasts for $9.62 billion. Core earnings came in at about $1.11 billion, beating the Street's estimate for 98 cents.
GSK raised its outlook for the year. The company now expects sales to increase 7% to 9%, up from its prior guidance for 5% to 7% growth. Core earnings are also projected to advance 10% to 12%, above the previous range for 8% to 10% growth.
Analysts following GSK stock called for $4.02 earnings per share and $40.13 billion in sales, up a respective 1.8% and 3.9%.
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