GlaxoSmithKline Plc Sales Fall, GM Beats Earnings Estimates

Shares of GlaxoSmithKline climbed as much as 3.75% to $45.92 in premarket trading, while GM shares climbed as high as $35.51 per share, an increase of 3.91%

GlaxoSmithKline Plc Sales Fall, GM Beats Earnings Estimates

GlaxoSmithKline and General Motors (GM) released the earnings results from their most recently completed quarters before opening bell this morning. GlaxoSmithKline posted core earnings per share of 95.4 pence, a 1% year over year decline. Total earnings were 57.3 pence per share, a 40% decline. Sales fell 10% year over year to £6.19 billion, compared to the consensus estimate of £6.15 billion.

GM reported earnings of $1.19 per share, excluding items, on sales of $39.6 billion. Analysts had been expecting earnings of 83 cents per share on revenue of $38.9 billion for the quarter. In the same quarter last year, GM posted sales of $40.5 billion for the fourth quarter.

Key metrics from GlaxoSmithKline’s earnings report

The drug maker’s net profits plunged 58% to £1.03 billion ($1.56 billion) for the fourth quarter. GlaxoSmithKline said a decline in sales of its respiratory drug Advair weighed on its fourth quarter earnings results.

For the full year, the drug maker reported Group revenues of £23 billion. Sales of Vaccines and Pharmaceuticals in emerging markets improved 5%. HIV treatment sales rose 15% and partially offset the 10% decline in the U.S. Consumer healthcare sales slipped 1% but returned to growth in the fourth quarter after the company fixed supply chain issues.

GlaxoSmithKline said they’re still making progress toward closing the deal with Novartis, having received approval from the Federal Trade Commission and European regulators. The drug maker is planning to hold a research and development investor day in October. The company slashed over a thousand jobs in December to cut costs.

Key metrics from GM’s earnings report

Net earnings were 66 cents per share, including net losses from special items, which amounted to 53 cents per share or $900 million. Net income was $1.1 billion. GM’s special items included $800 million related to the redemption of all of its outstanding Series A shares. EBIT was $2.4 billion, compared to last year’s $1.9 billion for the quarter.

For the full year, net earnings declined to $1.56 per share or $2.8 billion. General Motors continued to deal with recall charges in connection with the faulty ignition switches. Revenue for the full year was $155.9 billion, compared to 2013’s $155.4 billion EBIT for the full year fell from $8.6 billion last year to $6.5 billion in 2014, which includes recall-related expenses and restructuring charges.

Management said they also expect to increase the automaker’s dividend 20%, bringing it to 36 cents per share.