J.P. Morgan Shines Light on Gilead Sciences, Inc. 1Q:15 Earnings

J.P. Morgan’s healthcare analyst Cory Kasimov weighed in today with a few insights on Gilead Sciences, Inc.’s (NASDAQ:GILD) first-quarter earnings results. The company reported net income of $4.3 billion, or $2.76 per share, up from $2.2 billion, or $1.33 per share, a year earlier, sending shares up pre-market.

Kasimov wrote, “After a quick look at print, we continue to be impressed with the financial results Gilead delivers quarter after quarter with another top-line beat and bottom-line meet. Once again, the HCV franchise drove the top line with $4.6B in total sales, beating consensus of $3.6B. On the other hand, HIV revenues were down as a whole, off ~8% from consensus expectations ($2.4B vs. $2.6B cons). Gilead increased FY15 revenue guidance to $28-$29B vs. JPMe of $27.2B (we had considered prior guidance of $26B-$27B to be relatively conservative).”

Furthermore, “At the end of 1Q15, Gilead had $14.5B of cash and cash equivalents in the bank, generating $5.7B in operating cash flows. Limited highlights of pipeline progress from the previous quarter were shared, including approval of Sovaldi in Japan and recaps of various presentations from CROI (February 23-26, Seattle). On the call we will be paying particular attention to management’s commentary on the evolving HCV market dynamic, continued pipeline development (especially NASH and oncology), and gauging sentiment on BD opportunities in the near term.”

The analyst maintained an Overweight rating on GILD, with a price target of $116.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Cory Kasimov has a total average return of 5.2% and a 47.7% success rate. Kasimov has a 1.0% average return when recommending GILD, and is ranked #1045 out of 3587 analysts.

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