Karachi: Weaker second-quarter sales for AGP Limited and GlaxoSmithKline Pakistan Limited (GLAXO) have created a potential buying opportunity for investors, according to recent earnings expectations. Both companies are projected to experience a seasonal dip in earnings and sales revenue, traditionally marking the weakest quarter for pharmaceutical product sales.

According to JS Global, GLAXO is anticipated to report earnings per share (EPS) of Rs7.14 for the second quarter of the calendar year 2026, reflecting a 10% year-on-year increase. However, on a sequential basis, the company expects a 13% decline in profit after tax, indicating a decrease in sales. The company is also expected to announce an interim dividend per share (DPS) of Rs6.00.

In contrast, AGP is expected to post a consolidated EPS of Rs2.82, showing a 28% increase year-on-year but an 8% decline quarter-on-quarter. This brings the first-half EPS for the calendar year 2026 to Rs2.89, marking an 11% year-on-year decrease. AGP is forecasted to announce an interim DPS of Rs3.00.

The report maintains an "Overweight" stance on the sector, citing AGP and GLAXO as top picks for investors. AGP and GLAXO are currently trading at estimated price-to-earnings ratios for the calendar year 2026 of 13x and 11x, respectively. Both companies are perceived to offer considerable upside to the revised target prices of Rs275 for AGP and Rs510 for GLAXO.