How did GSK's Q4 2023 earnings surprise investors?

GSK's Q4 2023 earnings report exceeded investor expectations in several key aspects, reflecting the company's strategic focus on specialty medicines and innovative product launches. 1. **Earnings Performance**: - GSK reported a net income of $627.3 million for Q4 2024, marking a significant year-over-year growth of 23.69%. - The total revenue for the quarter was $10.16 billion, which, despite a slight decline of 0.95% year-over-year, exceeded market expectations. 2. **Analyst Expectations**: - Analysts had anticipated a decline in earnings and revenue for the quarter ended December 2024, primarily due to increased operating expenses and lower revenues. - However, GSK's reported core earnings per American depositary share (ADS) of 59 cents exceeded the Zacks Consensus Estimate of 53 cents. 3. **Stock Reaction and Outlook**: - Following the earnings release, GSK's stock price surged, reflecting investor confidence in the company's performance and long-term outlook. - The company's management highlighted robust growth in specialty medicines and new product launches, with significant contributions from HIV, oncology, and respiratory/immunology segments. 4. **Dividend and Profitability**: - GSK maintained a strong dividend policy, with a reported core operating profit growth of 13%, supporting a dividend of 61 pence per share. - The company's focus on profitability and return on equity is evident, which likely contributed to positive investor sentiment. In conclusion, GSK's Q4 2023 earnings report demonstrated resilience and outperformed market expectations, particularly in net income, despite a slight decline in revenue. The company's strategic emphasis on specialty medicines and new product launches, along with a robust dividend policy, likely bolstered investor confidence and contributed to a positive stock reaction.