Gilead Sciences's Earnings: A Preview

Gilead Sciences GILD will release its quarterly earnings report on Wednesday, 2024-11-06. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Gilead Sciences to report an earnings per share (EPS) of $1.55.

Gilead Sciences bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Past Earnings Performance

During the last quarter, the company reported an EPS beat by $0.41, leading to a 2.55% drop in the share price on the subsequent day.

Here's a look at Gilead Sciences's past performance and the resulting price change:

Performance of Gilead Sciences Shares

Shares of Gilead Sciences were trading at $89.84 as of November 04. Over the last 52-week period, shares are up 15.33%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Views on Gilead Sciences

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Gilead Sciences.

The consensus rating for Gilead Sciences is Neutral, based on 16 analyst ratings. With an average one-year price target of $84.25, there's a potential 6.22% downside.

Analyzing Analyst Ratings Among Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Vertex Pharmaceuticals, Regeneron Pharmaceuticals and Amgen, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• The prevailing sentiment among analysts is an Neutral trajectory for Vertex Pharmaceuticals, with an average 1-year price target of $495.09, implying a potential 451.08% upside.
• The consensus outlook from analysts is an Outperform trajectory for Regeneron Pharmaceuticals, with an average 1-year price target of $1172.19, indicating a potential 1204.75% upside.
• The prevailing sentiment among analysts is an Neutral trajectory for Amgen, with an average 1-year price target of $347.8, implying a potential 287.13% upside.

Overview of Peer Analysis

The peer analysis summary presents essential metrics for Vertex Pharmaceuticals, Regeneron Pharmaceuticals and Amgen, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Gilead Sciences ranks in the middle for revenue growth among its peers. It has the highest gross profit margin. The company's return on equity is higher than two peers and lower than one. Overall, Gilead Sciences is positioned competitively within its peer group based on these metrics.

Delving into Gilead Sciences's Background

Gilead Sciences develops and markets therapies to treat life-threatening infectious diseases, with the core of its portfolio focused on HIV and hepatitis B and C. Gilead's acquisition of Pharmasset brought rights to hepatitis C drug Sovaldi, which is also part of newer combination regimens that remain standards of care. Gilead is also growing its presence in the oncology market via acquisitions, led by CAR-T cell therapy Yescarta/Tecartus (from Kite) and breast and bladder cancer therapy Trodelvy (from Immunomedics).

Gilead Sciences: Financial Performance Dissected

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Over the 3 months period, Gilead Sciences showcased positive performance, achieving a revenue growth rate of 5.36% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Net Margin: Gilead Sciences's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 23.21% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Gilead Sciences's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 9.01% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Gilead Sciences's ROA stands out, surpassing industry averages. With an impressive ROA of 2.94%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.28.

To track all earnings releases for Gilead Sciences visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.