NEW YORK (TheStreet) -- Shares of GlaxoSmithKline Plc (GSK - Get Report) are down -1.99% to $55.27 as the healthcare group reported first quarter sales declined 10% as its main lung drug Advair grappled with an increasingly difficult U.S. market.
Sales were $9.45 billion as core earnings per share slipped 20%, below analysts forecasts.
- The revenue growth greatly exceeded the industry average of 1.4%. Since the same quarter one year prior, revenues rose by 29.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Pharmaceuticals industry and the overall market, GLAXOSMITHKLINE PLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 194.2% when compared to the same quarter one year prior, rising from $1,426.48 million to $4,196.37 million.
- Net operating cash flow has increased to $3,823.62 million or 21.59% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -22.12%.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full analysis from the report here: GSK Ratings Report