The GlaxoSmithKline Pharmaceuticals Limited (NSE:GLAXO) First-Quarter Results Are Out And Analysts Have Published New Forecasts

Investors in GlaxoSmithKline Pharmaceuticals Limited (NSE:GLAXO) had a good week, as its shares rose 3.0% to close at ₹2,820 following the release of its quarterly results. GlaxoSmithKline Pharmaceuticals reported in line with analyst predictions, delivering revenues of ₹8.1b and statutory earnings per share of ₹34.83, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for GlaxoSmithKline Pharmaceuticals

Following the latest results, GlaxoSmithKline Pharmaceuticals' four analysts are now forecasting revenues of ₹37.9b in 2025. This would be a notable 8.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 29% to ₹48.68. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹38.0b and earnings per share (EPS) of ₹48.25 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of ₹2,723, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic GlaxoSmithKline Pharmaceuticals analyst has a price target of ₹3,120 per share, while the most pessimistic values it at ₹2,376. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting GlaxoSmithKline Pharmaceuticals is an easy business to forecast or the the analysts are all using similar 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 11% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 1.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. GlaxoSmithKline Pharmaceuticals is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹2,723, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple GlaxoSmithKline Pharmaceuticals analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for GlaxoSmithKline Pharmaceuticals that you need to take into consideration.

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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.

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