Gilead Sciences Set to Release Q4 Earnings, Analysts Predict Decline
Gilead Sciences, Inc. (GILD), based in Foster City, California, focuses on creating treatments for serious diseases, including HIV, liver diseases, cancer, and inflammation. The company boasts a market capitalization of $114.2 billion and will unveil its Q4 earnings on Tuesday, February 11, after the market closes.
Anticipated Earnings Reveal Slight Decline
Before the earnings announcement, analysts forecast GILD to report earnings of $1.67 per share, which marks a 2.9% decrease from $1.72 per share a year earlier. In the last four quarters, Gilead has beaten Wall Street estimates three times, while one financial report fell short.
Fiscal 2024 Predictions and Recovery Expected
For fiscal year 2024, GILD is projected to achieve an earnings per share (EPS) of $4.36, down 35.1% from $6.72 in fiscal 2023. However, analysts predict a strong recovery in fiscal 2025, expecting EPS to rise by 73.2%, reaching $7.55.
GILD Stock Performance in 2023
Over the past year, GILD stock has climbed 6.6%, although it trails the S&P 500’s impressive 24.6% gains. Notably, the stock outperformed the Health Care Select Sector SPDR Fund (XLV), which saw a mere 1% return in the same period.
Recent Earnings Report Boosts Investor Confidence
On November 6, GILD shares surged by 6.8% following its Q3 earnings report. The company reported an EPS of $2.02, down 11.8% from the previous year but surpassing the expected $1.58. Revenue reached $7.55 billion, reflecting a 7% year-over-year increase despite a reduction in net earnings, attributed to a $1.75 billion impairment charge. Strong sales from the HIV treatment Biktarvy and COVID-19 therapy Veklury helped bolster results.
Future Outlook and Analyst Ratings
Gilead has raised its 2024 product sales forecast to between $27.8 billion and $28.1 billion, with adjusted earnings expected between $4.25 and $4.45 per share, enhancing market confidence.
Overall, analysts maintain a cautiously optimistic outlook on GILD stock with a “Moderate Buy” rating. Out of 29 analysts covering the stock, 17 recommend a “Strong Buy,” while 12 suggest holding.
The average price target for GILD stands at $100.08, indicating a potential upside of 9.2% from current 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
