Profit Up, Revenues Down at Glaxo (GSK) (VRX)

GlaxoSmithKline (GSK) reported first quarter earnings of $1.02 per American Depository Share (ADS), a couple of cents above the Zacks Consensus Estimate and 10.5% above the year-ago earnings. Revenues, however, declined to $10.5 billion, down 10% at constant exchange rates (CER). Revenues missed the Zacks Consensus Estimate of $10.9 billion.

The Quarter in Detail

While Pharmaceuticals sales declined 14%, Consumer Healthcare grew 7%. Price cuts in the EU and the US healthcare reform affected revenues by approximately