HIV Drugmaker Gilead Reports Strongest Quarterly Performance Of 2024, Analysts Boost Price Target On Raised Outlook

Gilead Sciences Inc GILD stock is trading higher on Thursday after the company reported better-than-expected third-quarter financial results and raised its fiscal year 2024 guidance.

On Wednesday after market, Gilead reported third-quarter adjusted EPS of $2.02, down from $2.29 a year ago, beating the consensus of $1.55.

The HIV drug maker reported sales of $7.55 billion, up 7% year over year, beating the consensus of $7 billion, primarily due to higher sales in HIV and Veklury (remdesivir), Oncology and Liver Disease.

Also Read: Gilead Sciences/Merck’s Investigational Once-Weekly HIV Combo Therapy Shows Sustained Virus Suppression To 48 Weeks

HIV product sales increased 9% to $5.1 billion, with Biktarvy sales increased 13% to $3.5 billion. Descovy sales jumped 15% to $586 million.

The Liver Disease portfolio sales increased 4% to $733 million. Veklury sales increased 9% to $692 million.

“Gilead’s third-quarter results are the strongest of the year to date, with 7% year-over-year revenue growth, including 13% year-over-year growth for Biktarvy,” said Daniel O’Day, Chairman and CEO.

Guidance: Gilead Sciences raised its fiscal year 2024 adjusted EPS guidance from $3.60 – $3.90 to $4.25 – $4.45 compared to the consensus of $3.81.

The company expects 2024 product sales of $27.8 billion – $28.1 billion compared to prior guidance of $27.1 billion – $27.5 billion.

Analysts’ reaction:

• Piper Sandler maintains Gilead Sciences with an Overweight, raising the price target from $95 to $105.
• Barclays reaffirms Gilead with an Equal-Weight rating while boosting the price target from $84 to $95.
• Wells Fargo maintains Gilead with an Overweight rating, raising the price target from $100 to $105.
• Cantor Fitzgerald reiterates Gilead with a Neutral rating, increasing the price target from $70 to $80.
• Goldman Sachs maintains Gilead’s Neutral rating, lifting the price target from $74 to $84.
• RBC Capital maintains Gilead’s Sector Perform rating and boosts the price target from $75 to $81.
• JP Morgan maintains Gilead with an Overweight rating, raising the price target from $100 to $105.
• Baird maintains Gilead’s Neutral rating, increasing the price target from $80 to $95.

Price Action: GILD stock is up 5.94% at $97.14 at last check Thursday.

Photo via Shutterstock

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