GlaxoSmithKline Pharmaceuticals Limited (NSE:GLAXO) Just Released Its Second-Quarter Results And Analysts Are Updating Their Estimates

It's been a good week for GlaxoSmithKline Pharmaceuticals Limited (NSE:GLAXO) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.6% to ₹2,712. Results look mixed - while revenue fell marginally short of analyst estimates at ₹10b, statutory earnings were in line with expectations, at ₹34.83 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for GlaxoSmithKline Pharmaceuticals

After the latest results, the four analysts covering GlaxoSmithKline Pharmaceuticals are now predicting revenues of ₹37.1b in 2025. If met, this would reflect a credible 4.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 25% to ₹49.70. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹37.6b and earnings per share (EPS) of ₹50.40 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹2,917. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values GlaxoSmithKline Pharmaceuticals at ₹3,241 per share, while the most bearish prices it at ₹2,633. This is a very narrow spread of estimates, implying either that GlaxoSmithKline Pharmaceuticals is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the GlaxoSmithKline Pharmaceuticals' past performance and to peers in the same industry. It's clear from the latest estimates that GlaxoSmithKline Pharmaceuticals' rate of growth is expected to accelerate meaningfully, with the forecast 8.8% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 1.9% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, GlaxoSmithKline Pharmaceuticals is expected to grow slower than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that GlaxoSmithKline Pharmaceuticals' revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹2,917, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on GlaxoSmithKline Pharmaceuticals. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for GlaxoSmithKline Pharmaceuticals going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for GlaxoSmithKline Pharmaceuticals you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.