Why GSK Stock Is Surging Today

GSK (GSK), a large British drug maker, is rallying 8% after reporting higher-than-expected fourth-quarter earnings per share and raising its long-term revenue guidance.

GSK’s Beat-and-Raise Results

GSK generated earnings per share of 23.2 pence last quarter,  versus analysts’ average estimate of 20 pence.

A scientist in the lab, researching the development of biopharmaceutical monoclonal antibody drugs.

Last quarter, its operating profit surged 21% versus the same period a year earlier to 696 million pounds.

The revenue of the company’s oncology treatments soared 98% last year, while the sales of its specialty medicines, including its respiratory and immunology treatments, jumped 19% in 2024 to 11.8 billion pounds.

Meanwhile, GSK increased its 2031 revenue guidance to over 40 billion pounds from its previous outlook of more than 38 billion pounds.

In 2025, GSK predicts that its core operating profit will increase 6% to 8%.

GSK’s Comments

“We are increasing and prioritising R&D investment to promising new long-acting and specialty medicines in Respiratory, Immunology & Inflammation, Oncology and HIV. Our outperformance and stronger balance sheet support these investments and others planned in R&D, ” CEO Emma Walmsley said in a statement.

Walmsley also noted that the company announced that it would carry out a new 2 billion pound share buyback program.

The Recent Price Action of GSK Stock

In the last month, the shares are up 11%, while they have gained 4% in the last three months.

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Disclosure: None. This article is originally published at Insider Monkey.