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

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Zinger Key Points
  • Gilead’s Q3 sales increased 7% year-over-year, including 13% year-over-year growth for Biktarvy.
  • The Liver Disease portfolio sales increased 4% to $733 million, and Veklury sales increased 9% to $692 million.
  • Brand New Membership Level: Benzinga Trade Alerts

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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