On Feb. 8, GlaxoSmithKline
- Sales grew 12.3%, led by strong performance from drugs like Avandia and Coreg.
- Glaxo plans to introduce five new drugs for fiscal 2007, including drugs for important markets like cardiovascular disease, breast cancer, and cervical cancer.
- Fiscal 2007 is expected to be challenging for GSK, as its major drugs, Zofran and Wellbutrin XL, are going to face competition from generic variants.
- The company has received approval from the U.S. Food and Drug Administration for its over-the-counter weight-loss drug, Alli. This is the first weight-loss drug approved by the FDA for use without a prescription.
- The company expects EPS to grow by 8%-10% this year, at constant exchange rates.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$11,542 |
$10,153 |
13.7% |
|
Net Profit |
$2,359 |
$1,929 |
22.3% |
|
EPS |
$0.41 |
$0.34 |
20.6% |
|
Diluted Shares |
5,669 |
5,710 |
0.7% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
75.9% |
78.0% |
(2.1) |
|
Operating Margin |
28.8% |
27.4% |
1.4 |
|
Net Margin |
20.4% |
19.3% |
1.1 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$5,959 |
$8,996 |
(33.8%) |
|
Accounts Rec. |
$10,421 |
$7,578 |
37.5% |
|
Inventory |
$4,776 |
$3,742 |
27.6% |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$9,547 |
$1,408 |
578.1% |
|
Long-Term Debt |
$9,353 |
$9,060 |
3.2% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$3,775 |
$2,976 |
26.8% |
|
Capital Expenditures |
$912 |
$602 |
51.5% |
|
Free Cash Flow |
$2,863 |
$2,374 |
20.6% |
Find out why Fools always follow the money.
Related Companies:
-
AstraZeneca
(NYSE:AZN) -
Sanofi-Aventis
(NYSE:SNY) -
Novartis
(NYSE:NVS) -
Johnson & Johnson
(NYSE:JNJ) -
Pfizer
(NYSE:PFE)
Related Foolishness:
- Glaxo's Prescription for Sagging Sales
- Merck's Special Interest
- The Best Drug Stock for 2007: GlaxoSmithKline
Pfizer is a Motley Fool Inside Value recommendation. Johnson & Johnson and GlaxoSmithKline are Motley Fool Income Investor selections.
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