GSK’s recent stock performance aligns with strong earnings, yet the statutory profit may not fully capture its potential due to a UK£1.5 billion reduction from unusual, likely one-off items. These unusual items suggest that future profits could be higher if they don’t recur, indicating that GSK’s reported profit might actually understate its true earnings capability. The company has also shown impressive earnings per share growth over the last year.
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Statutory Profit Doesn't Reflect How Good GSK's (LON:GSK) Earnings Are
GSK’s recent stock performance aligns with strong earnings, yet the statutory profit may not fully capture its potential due to a UK£1.5 billion reduction from unusual, likely one-off items. These unusual items suggest that future profits could be higher if they don’t recur, indicating that GSK’s reported profit might actually understate its true earnings capability. The company has also shown impressive earnings per share growth over the last year.