Biotech giant Gilead Sciences, Inc. GILD is scheduled to report third-quarter 2024 results on Nov. 6, after market close.
The Zacks Consensus Estimate for sales and earnings is pegged at $6.99 billion and $1.58 per share, respectively.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
GILD’s Earnings Surprise History
GILD’s earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 13.47%.
Gilead Sciences, Inc. Price, Consensus and EPS Surprise
Gilead Sciences, Inc. price-consensus-eps-surprise-chart | Gilead Sciences, Inc. Quote
What Our Model Predicts for GILD
Our proven model predicts an earnings beat for Gilead this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is the case here, as you will see below.
Earnings ESP: Earnings ESP for GILD is -3.16%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Factors Influencing GILD’s Q3 Results
Gilead has a market-leading HIV franchise, led by flagship HIV therapies — Biktarvy and Descovy. Higher Biktarvy sales, boosted by higher demand, have likely fueled sales in the third quarter. Biktarvy continues to gain market share in the United States, outpacing all other branded regimens for HIV treatment. Descovy’s revenues, too, have likely increased as the pre-exposure prophylaxis (PrEP) market continued to demonstrate robust growth.
The third-quarter top-line estimate for Biktarvy and Descovy is pegged at $3.4 billion and $525 million, respectively, and our model estimate for the same is pinned at $3.4 billion and $520.4 million.
The Liver Disease portfolio sales include chronic hepatitis C virus, chronic hepatitis B virus and chronic hepatitis delta virus. Higher demand for chronic hepatitis delta virus products and chronic hepatitis B virus has likely boosted sales of this franchise in the third quarter.
Veklury sales continue to be highly variable. Lower COVID-related hospitalizations might have resulted in lower sales.
Cell Therapy product sales have likely increased in the to-be-reported quarter. While competition in the United States might have affected sales, Yescarta sales are likely to have been driven by increased demand for relapsed or refractory (R/R) large B-cell lymphoma outside the country.
Tecartus (brexucabtagene autoleucel) sales are being driven by increased demand in adult R/R B-cell precursor acute lymphoblastic leukemia and mantle cell lymphoma. Continued demand for Yescarta and Tecartus in new markets across Europe and other geographies, such as Japan, must have driven demand for both Yescarta and Tecartus.
The Zacks Consensus Estimate and our model estimate for Cell Therapy product sales are pinned at $541 million and $581 million, respectively.
Increased sales of Trodelvy, indicating continued solid uptake in second-line metastatic triple-negative breast cancer and pre-treated HR+/HER2- metastatic breast cancer, have likely boosted sales in the third quarter. The Zacks Consensus Estimate and our estimate for Trodelvy sales are pinned at $354 million and $337.5 million, respectively.
While R&D expenses might have increased due to incremental expenses associated with the recent acquisitions, SG&A expenses must have possibly declined.
Key Recent Developments
The FDA granted accelerated approval to seladelpar for the treatment of primary biliary cholangitis (PBC), in combination with ursodeoxycholic acid (UDCA), in adults who have had an inadequate response to UDCA, or as monotherapy in patients unable to tolerate UDCA.
The candidate was approved under the brand name Livdelzi. Seladelpar was added to GILD’s portfolio/pipeline through the acquisition of CymaBay Therapeutics Inc. for $4.3 billion in March 2024. The approval of Livdelzi strengthens GILD’s liver disease portfolio.
GILD’s Price Performance
Gilead’s shares have gained 10.5% year to date against the industry's decline of 3.7%.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some drug/biotech stocks that have the right combination of elements to beat on earnings this time around.
Legend Biotech LEGN has an Earnings ESP of +18.22% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
LEGN’s earnings outpaced estimates in each of the trailing four quarters, delivering an average surprise of 62.02%. LEGN is scheduled to report third-quarter results on Nov. 12.
Ionis Pharmaceuticals IONS has an Earnings ESP of +15.57% and a Zacks Rank #3 at present.
IONS beat on earnings in three of the trailing four quarters and missed in the remaining one, delivering an average surprise of 38.47%. IONS is scheduled to report third-quarter results on Nov. 6.
Sarepta Therapeutics SRPT has an Earnings ESP of +11.11% and a Zacks Rank #3 at present.
SRPT has a trailing four-quarter average earnings surprise of 834.2%. Its shares have surged 27.8% year to date. SRPT is scheduled to report third-quarter results on Nov. 6.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
