AstraZeneca versus GSK Results and Dividend Summaries

November 6, 2012

Both GSK and AstraZeneca announced their quarterly results. Currently, UK’s pharma majors provide dividend yields of between 5 percent and 6 percent.

I have extensively reported on both GSK’s third quarter results, which you can access Here and AstraZeneca’s which you can access Here.

AstraZeneca

Though AstraZeneca is not a quarterly dividend payer, it still reported on its third quarter to 30 September. Worryingly, revenue declined further following the loss of exclusivity on several brands which took its toll on profits – resulting in a 14 percent fall in core earnings per share for the nine months.

On a more positive note, on his first day in the job, the new CEO announced that AstraZeneca’s share buybacks have now been suspended. Not a moment too soon I would say as net cash flow has turned into net debt of US$3.8bn compared with net cash of $2.8bn at the start of the year.

Click Here for our take on AstraZeneca’s results and its dividend prospects

GSK

Together with its third quarter results, GSK also announced a review of its European operations as sales fell 8 percent in the third quarter. Continued pressure on drug prices in Europe, together with lower demand for vaccines hit overall sales at the group.

The group is expecting fourth quarter sales to pick up, but full year sales are now expected to be flat year-on-year, and that is assuming there is no further deterioration in Europe.

The dividend was up a penny, at 18 pence – going ex-dividend on 14 November and payable on 3 January 2013 – an improvement on last year’s third quarter pay-out of 17 pence.

Click Here for more information on GSK’s results and dividend prospects.


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