Gilead Sciences, Inc. (GILD) Healthcare – Biotechnology | Reports April 28, After Market Closes.
Gilead Sciences, Inc. (GILD) Q1 Earnings – Key Takeaway
- The Estimize consensus is calling for earnings per share $3.23 on $8.21 billion in revenue, 11 cents higher than Wall Street on the bottom and $130 million on the top
- Gilead’s recent string of success can be attributed to the strength of its antiviral portfolio
- Merck recently launched a cheaper Hepatitis C drug which will put pressure Gilead’s margins and sales.
- What are you expecting for GILD? Get your estimate in here!
Biopharmaceutical company, Gilead Sciences, is scheduled to report first quarter earnings tomorrow, after the market closes. Gilead has been a hot streak the past 2 fiscal years, beating in 7 of the past 8 reported quarters. Given its track record, it won’t be surprising if Gilead posts another win with its Q1 results. The Estimize consensus is calling for earnings per share $3.23 on $8.21 billion in revenue, 11 cents higher than Wall Street on the bottom and $130 million on the top. Estimates have been on the move since its last report. Earnings per share estimates have increased 10% with revenue also up 4%. Compared to a year earlier, profits are forecasted to rise 10% while sales could increase 8%
Strong earnings have not translated to the market. Gilead stock is down 3% from the prior year and 8% in the past 6 months alone. Fortunately, the stock moves in investors favor throughout earnings season. In the 30 days prior to earnings, shares typically increase 6% and continue to do so through the 30 days following results.
Over the last four quarters Gilead has posted positive earnings surprises of 5.9% on average, and is expected to beat again this Wednesday. Gilead is the market leader in Hepatitis C treatments, with two popular drugs Sovaldi and Harvoni. Their Hep C franchise, along with other antivirals, make up 90% of the company’s revenue stream. However, the benefit of these drugs to the bottom-line is waning as they have been on the market for a year and half now and are also curative. More competition is set to hit the Hep C market soon, with Merck recently approved to release its rival drug. Merck’s treatment imposes a direct threat to Gilead especially since the drug is cheaper than Harvoni.
In order to diversify revenues, Gilead is focusing on growing other core offerings including HIV and Hep B treatments. Newly launched Zydelig, a treatment for three forms of cancer, is performing well and with a number of new drugs already FDA approved, this could lead to strong revenue growth in the near future. In addition to a solid product portfolio, Gilead possess a robust pipeline of potential products. Additional acquisitions and licensing agreements could help Gilead reach these goals.
Do you think GILD can beat estimates? There is still time to get your estimate in here!