Gilead Sciences, Inc.’s (GILD) Q3:17 Earnings Send Shares Lower


Gilead Sciences, Inc. (NASDAQ:GILD) shares fell nearly 4% in the extended session Thursday after the biotech giant released its third-quarter results, showing weaker sales for its hepatitis C drugs Harvoni and Epclusa ($2.2 billion, down from $3.3 billion a year earlier.)

The company reported second-quarter net income of $2.7 billion, or $2.06 a share, compared to $3.3 billion, or $2.49 a share, in the year-ago period. Third-quarter adjusted earnings were 2.27 a share. Revenue fell to $6.5 billion from $7.5 billion in the year ago period. Analysts surveyed by FactSet had estimated adjusted earnings of $2.13 a share on revenue of $6.4 billion. For the full year, Gilead estimates revenue of $24.5 billion to $25.5 billion, compared with a previous estimate of sales in a range from $24 billion to $25.5 billion.

J.P. Morgan’s Cory Kasimov commented, “GILD beat on the top and bottom line and tightened 2017 guidance. Overall HCV was a little light while HIV was slightly ahead of expectations. Aside from the KITE acquisition, the rest of this quarter’s earnings report was largely incremental. At this point there is still a meaningful amount of investor focus on continued M&A.”

Kasimov maintained a Buy rating on the stock and has a price target of $85. Separately, Oppenheimer analyst Hartaj Singh assigned a Hold rating on GILD

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Hartaj Singh and Cory Kasimov have a yearly average return of 23.4% and 2.2% respectively. Singh has a success rate of 49% and is ranked #386 out of 4700 analysts, while Kasimov has a success rate of 39% and is ranked #1765.

Sentiment on the street is mostly bullish on GILD stock. Out of 16 analysts who cover the stock, 9 suggest a Buy rating and 7 recommend to Hold the stock. The 12-month average price target assigned to the stock is $89.50, which represents a potential upside of 14% from where the stock is currently trading.

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