|
Warning pummels Glaxo
|
 |
July 29, 1999: 6:25 a.m. ET
Pharmaceutical giant's stock slumps on profit, revenue shortfall
|
LONDON (CNNfn) - Shares in pharmaceutical giant Glaxo Wellcome went into a downward spin early Thursday in London after the company warned it would not meet profitability targets for this year.
Although first-half earnings announced Thursday were in line with analysts' forecasts, chairman Richard Sykes confessed the group would fail to meet its commitment to grow revenues and profits by more than 10 percent.
The admission sent the company's shares almost 7 percent lower to 1,638 pence in London. They have been strong in recent days as the company has announced a number of product breakthroughs and licensing agreements.
First-half pretax earnings rose 6 percent to 1.325 billion pounds ($2.12 billion). Revenue rose 4.106 billion from 3.865 billion and earnings per share hit 25.7 pence from 23.7 pence.
"It was always going to be touch and go whether they made double digit growth...It's quite a psychological blow in the short term," Michael King, analyst at SG Securities told Reuters. He said however, that he remained a buyer of the shares.
|
|
|
|
|
|
Glaxo Wellcome
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
