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Highlights
GSK reported a 2% increase in constant exchange rate sales to £8 billion, driven by growth in specialty medicines despite a decline in vaccine sales.
Next raised its guidance for both fourth-quarter and full-year performance following a 7.6% surge in full-price sales, attributed to colder weather conditions.
US stock markets displayed mixed results, with the Nasdaq reaching a new high amid a focus on corporate earnings and economic data.
GSK (LSE:GSK) has released its third-quarter results, reporting a 2% increase in constant exchange rate sales, reaching £8 billion. This growth was primarily driven by a strong performance in specialty medicines, which helped offset a 15% decline in vaccine sales due to shifts in vaccination priorities in the US. While total operating profit decreased by 86% as a result of a £1.8 billion settlement charge related to Zantac, core operating profit and earnings per share each rose by 5%, supported by effective cost management strategies. GSK reaffirmed its guidance for 2024, indicating anticipated turnover growth of 7% to 9%, along with a third-quarter dividend of 15 pence and a projected full-year dividend of 60 pence.
In retail, Next has lifted its guidance for both the crucial fourth quarter and the full year after reporting a significant 7.6% increase in full-price sales for the 13 weeks ending October 26. This strong performance exceeded the company’s prior forecasts and was largely attributed to the arrival of colder weather, contrasting with last year’s warmer conditions. As a result, Next revised its expectations for fourth-quarter full-price sales and overall profitability.
Meanwhile, US stock markets concluded the day with mixed results. The Dow Jones Industrial Average fell by 0.4%, while the S&P 500 rose by 0.2%, and the Nasdaq achieved a new record high, gaining 0.8%. This upward momentum in the tech-heavy Nasdaq came amid a busy week for earnings reports, with significant attention on major technology companies. Additionally, preliminary figures from the US Commerce Department indicated that the trade deficit widened by 14.9% to a two-and-a-half-year high in September, contributing to a cautious outlook among investors.
