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Gilead Sciences, Inc. (GILD), headquartered in Foster City, California, is a global biopharmaceutical leader known for its groundbreaking work in antiviral therapies. Valued at a market cap of $108 billion, Gilead's innovative portfolio delivers cutting-edge treatments that improve patient outcomes in areas such as HIV, hepatitis, and cancer. The company is set to announce its fiscal Q3 earnings results after the market closes on Wednesday, November 6.
Ahead of the event, analysts expect GILD to report a profit of $1.64 per share, down 28.4% from $2.29 per share in the year-ago quarter. The company surpassed Wall Street’s bottom-line estimates in three quarters and missed on another occasion in the last four quarters.
Gilead Sciences' adjusted EPS of $2.01 per share for the recent quarter surpassed the consensus estimate by 24.8%, thanks to solid sales of its therapies for HIV, Oncology, and Liver Disease.
For fiscal 2024, analysts expect GILD to report EPS of $3.76, down 44.1% from $6.72 in fiscal 2023. However, in a remarkable turnaround, EPS is anticipated to surge by 93.4% year-over-year, reaching $7.27 in fiscal 2025.
GILD stock has soared 10.9% over the past year, underperforming the broader S&P 500 Index's ($SPX) 38.6% gains and the S&P 500 Healthcare Sector SPDR’s (XLV) 18.2% gains over the same time frame.
GILD climbed 2.7% on Sept. 12 following the announcement of positive results from a late-stage trial of its HIV drug lenacapavir, which reduced new infections by 96%. Lenacapavir, administered twice a year, outperformed the daily HIV drug Truvada. Gilead plans to seek regulatory approval for the drug, with submissions expected by the end of the year.
Nevertheless, despite exceeding expectations with its Q2 earnings, which was released on August 8, GILD's shares fell 2.6% in the next trading session, primarily driven by concerns over revenue growth being attributed to non-core products.
The consensus opinion on GILD stock is reasonably optimistic, with an overall “Moderate Buy” rating. Of the 27 analysts covering the stock, 14 advise a “Strong Buy” rating, one recommends a “Moderate Buy,” and 12 suggest “Hold.” This configuration is slightly more bullish than a month ago when the stock had 12 “Strong Buy” ratings.
GILD’s average analyst price target is $84.60, indicating a marginal potential upside from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
