What to Expect from GLAXO in 2QCY25

GlaxoSmithKline (GLAXO) is expected to post a very strong set of numbers for the second quarter of 2025. Analysts are projecting earnings per share (EPS) of around PKR 7.5, which would be 12% higher than the last quarter and nearly double compared to the same period last year.

Why such strong expectations?

There are two major reasons behind the optimism:

📢 Announcement: We're on WhatsApp – Join Us There! 

1. Deregulation of non-essential medicines: This has allowed GLAXO to increase prices for some of its products, boosting revenue and profitability.
2. Falling input costs: Prices of key raw materials, such as Amoxicillin, have dropped. This helps the company spend less while still selling at higher prices.

Margin expectations

With these factors, analysts believe GLAXO’s margins will look much better this quarter:

• Gross margin could rise to around 36% (vs. 24% last year).
• Operating margin might hit 25% (vs. 13% last year).
• Net margin is expected to be near 15% (vs. 8% last year).

This means GLAXO won’t just be making more sales, but also keeping a bigger portion of those sales as profit.

Dividend outlook

The company has not yet announced anything about dividends, but investors will be keeping an eye on whether the strong results could translate into better payouts later.

The big picture

If these expectations hold, GLAXO would stand out as one of the top performers in the pharma sector this quarter. Pricing freedom and cheaper raw materials have created a perfect setup for growth.

Don't miss:

• Which cars are driving the rally in auto stocks?
• 5 High ROE stocks according to Topline Securities
• Why TPLP could go higher.

GLAXO is entering 2QCY25 with strong tailwinds, and investors are watching closely to see if the earnings match the hype.

Source: Optimus Capital Management

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →