After its latest results, are GSK shares a buy?

2022 has been a tough time for investors. Markets have taken a beating as new 40-year high inflation levels and global conflicts have dented the economic outlook. Yet despite this, GSK (LSE: GSK) shares have been a beacon of light.

With the FTSE 100 seeing slight losses this year, the GSK share price is up over 8%. The last 12 months have seen the pharmaceutical giant’s stock rising by 24%.

The firm continued this positive momentum yesterday as it released an encouraging set of Q2 results. So, is this an indication I should be buying some shares?

The update

GSK shareholders will be pleased with the update the business provided yesterday.

Beating expectations, the company raised its full-year revenue and profit guidance. It now expects sales to grow between 6% and 8%, up from the prior target of 5%-7%. It also raised its guidance for adjusted operating profit, with it anticipated to come in somewhere between 13% and 15% as opposed to the previous 12%-14%.

A 13% growth in total sales year on year to £6.9bn was fuelled by record sales of its shingles vaccine Shingrix, while it also talked of the global strengthening of its R&D pipelines.

With tough economic conditions, this is a solid set of results.

Haleon spin-off

GSK has also been in the news recently for its recent demerger. Last week, the business split off its consumer healthcare business Haleon. Earning a spot on the FTSE 100, it’s the world’s largest standalone consumer health business.

The move should allow GSK to focus more on long-term developments of vaccines and medicines. And, as an added bonus, it’s also siphoned off a substantial amount of debt in the process.

Many spectators believe that the business has failed to perform in recent times. So this demerger offers an opportunity for it to become more streamlined. CEO Emma Walmsley spoke of the move as “a great catalyst” for a bright future for GSK. She also talked of the “Gordian knot” that has seen the business struggle previously.

While it’s still early for the reborn company, this move seems to make a lot of sense. As a potential investor, this is encouraging.

Is it time to buy?

So, should I be buying GSK shares today? Well, I’m tempted.

Apart from the above, I also like the stock due to the steadiness it can offer my portfolio in these uncertain times. And it’s proved its worth with its performance this year.

The products GSK sells are essential, making it fairly immune to the cost-of-living crisis we’re currently facing.

However, it could suffer should its cost rise as we head further into the year. And with supply chain issues always threatening, this could impact the business.

Despite this, I’d still buy GSK shares today. Its strong results show its resilience. And the demerger should hopefully bring a new lease of life for the firm.