How Analysts Value Gilead Now After Earnings
After Gilead Sciences reported fourth-quarter financial results on Tuesday, analysts weighed in on this biotech giant and in what direction it might go next.
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Gilead Sciences Inc. (NASDAQ: GILD) reported fourth-quarter financial results on Tuesday. As a result, analysts weighed in on this biotech giant and in what direction it might go next.
The company had $3.32 in earnings per share (EPS) on $8.51 billion in revenue, versus Thomson Reuters consensus estimates that called for $3.00 in EPS on revenue of $8.13 billion. The same period from the previous year had EPS of $2.43 on $7.31 billion in revenue.
In the fourth quarter of 2015, product sales in the United States were $4.8 billion, compared to $5.5 billion in the fourth quarter of 2014. In Europe, product sales were $1.7 billion, compared to $1.4 billion a year ago. Sales in other international locations increased to $1.9 billion, compared to $373 million.
Harvoni sales totaled $3.35 billion in the fourth quarter, compared to $2.11 billion last year. Sovaldi sales totaled $1.55 billion this year, which came down from $1.73 billion.
As for full-year 2016 guidance, Gilead expects to have net product sales in the range of $30 billion to $31 billion, compared to the consensus estimate of $31.68 billion in revenue.
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A few analysts poured into Gilead following the release of its earnings report:
- Barclays kept its Overweight rating but lowered its price target to $115 from $130.
- Merrill Lynch has a Neutral rating and lowered its price target from $107 to $104.
- Goldman Sachs kept a Neutral rating but lowered its price target to $91 from $100.
- JPMorgan maintained its Overweight rating but lowered its target price to $122 from $133.
- Morgan Stanley kept an Equal Weight rating but lowered its price target from $120 to $111.
- RBC Capital Markets kept an Outperform rating but lowered its price target to $120 from $130.
Shares of Gilead closed Friday at $85.14, with a consensus analyst price target of $118.28 and a 52-week trading range of $81.89 to $123.37.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
