Core Insights - Gilead Sciences reported fourth-quarter 2024 adjusted EPS of $1.90, exceeding the consensus estimate of $1.70, with sales rising 6% year-over-year to $7.57 billion, surpassing the consensus of $7.14 billion [1][2] Sales Performance - HIV sales increased by 16% to $5.45 billion, driven by demand, higher realized prices, and favorable inventory dynamics [1] - Biktarvy sales rose from $3.12 billion to $3.8 billion, while liver disease sales increased by 4% to $719 million, supported by a strong Livdelzi launch and increased HBV/HDV demand [2] Dividend and Guidance - Gilead increased its quarterly cash dividend by 2.6% to $0.79 per share [2] - The company expects 2025 adjusted EPS to be between $7.70 and $8.10, compared to the consensus of $7.58, and sales to range from $28.2 billion to $28.6 billion, against a consensus of $28.42 billion [3] Future Prospects - Gilead plans to launch lenacapavir for HIV PrEP in Summer 2025, which is expected to enhance its position in the PrEP market and improve patient adherence [4][5] - Analysts from Piper Sandler and Goldman Sachs express optimism regarding Gilead's upcoming lenacapavir launch and its potential impact on revenue [4][5] Analyst Sentiment - Needham maintains a Hold rating on Gilead, citing balanced risk/reward at current levels, but is growing more optimistic due to strong HIV business performance and improving profit margins [6][7] - Gilead's stock rose by 7.73% to $103.57 following the earnings report [7]

Financial Performance - Gilead reported fourth-quarter revenue of $7.6 billion, reflecting a 6% year-over-year increase [2] - The company posted earnings per share (EPS) of $1.42 based on GAAP, marking a year-over-year increase of approximately 25% [2] - Non-GAAP (adjusted) EPS rose roughly 10.5% year over year to $1.90, exceeding the consensus Wall Street estimate of $1.70 per share [2] Future Outlook - Gilead provided optimistic full-year 2025 guidance, projecting non-GAAP diluted EPS between $7.70 and $8.10, compared to $4.62 for full-year 2024 [3] - The company faced challenges in the previous year due to the acquisition of CymaBay and higher income tax expenses impacting earnings [3] Product Development - Gilead is advancing a twice-yearly version of Sunlenca (lenacapavir) and has completed regulatory filings in the U.S. and Europe for the HIV drug [4] - Lenacapavir was recognized as "Breakthrough of the Year" for 2024 by Science magazine [4] Investment Considerations - Gilead's stock may not appeal to growth investors due to expected slight revenue decline, despite anticipated earnings growth [5] - The company announced a dividend increase of 2.6%, resulting in a forward dividend yield of nearly 3% [5] - Gilead's shares are trading at an attractive valuation of 12.8 times forward earnings, which may appeal to income and value investors [5]

Core Insights - Zacks Premium provides various tools to enhance stock market investment confidence and knowledge [1] - The Zacks Style Scores are designed to rate stocks based on value, growth, and momentum characteristics, aiding investors in selecting securities with high potential for market outperformance [3][4][5][6][7] Zacks Style Scores - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [4][5][6][7] - Value Score identifies undervalued stocks using ratios like P/E and Price/Sales [4] - Growth Score emphasizes a company's financial health and future growth potential [5] - Momentum Score tracks price trends to identify favorable investment opportunities [6] - VGM Score combines all three styles to highlight stocks with attractive value, growth, and momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building [8] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [9] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [11] Company Spotlight: Gilead Sciences - Gilead Sciences specializes in developing treatments for HIV and other diseases, with total sales from its HIV franchise reaching $18.2 billion in 2023, reflecting a 6% year-over-year growth [13] - Gilead holds a Zacks Rank of 3 (Hold) and has a VGM Score of A, indicating solid performance potential [14] - The company has a Value Style Score of B, supported by a forward P/E ratio of 12.67, making it attractive for value investors [14] - Recent upward revisions in earnings estimates suggest positive momentum, with the Zacks Consensus Estimate for fiscal 2025 increasing by $0.04 to $7.59 per share [14] - Gilead's strong Zacks Rank and favorable Style Scores position it as a noteworthy investment opportunity [15]

Core Insights - Gilead Sciences, Inc. reported better-than-expected fourth-quarter results with adjusted EPS of $1.90, surpassing the Zacks Consensus Estimate of $1.67 and showing an increase from $1.72 in the same quarter last year [1][2] - Total revenues reached $7.6 billion, exceeding the Zacks Consensus Estimate of $7.1 billion and reflecting a 6% year-over-year increase driven by higher sales in HIV, oncology, and liver disease drugs [2][4] - The company provided an optimistic guidance for 2025, projecting product sales between $28.2 billion and $28.6 billion and adjusted EPS in the range of $7.70-$8.10 [15] Financial Performance - Total product sales rose 7% year-over-year to $7.5 billion, with HIV product sales growing 16% to $5.5 billion, driven by increased demand and favorable pricing [4][5] - Biktarvy, the flagship HIV therapy, saw sales increase by 21% year-over-year to $3.8 billion, capturing over 50% of the U.S. treatment market [5] - Descovy sales also increased by 21% year-over-year to $616 million, maintaining over 40% U.S. market share in pre-exposure prophylaxis [6] Cost Analysis - Adjusted product gross margin improved to 86.7% from 86.1% in the previous year, attributed to product mix [12] - Research and development expenses rose to $1.6 billion from $1.5 billion due to increased investments and clinical activities [12] - SG&A expenses increased by 16% to $1.9 billion, driven by litigation accrual and higher sales and marketing spending [13] 2024 Results - Revenues for 2024 increased by 6% to $28.8 billion, surpassing the Zacks Consensus Estimate of $28.2 billion [14] - EPS for 2024 was reported at $4.62, down 31% from $6.72 in 2023 due to higher acquired IPR&D expenses and increased income tax expenses [14] 2025 Guidance - Gilead expects total product sales, excluding Veklury, to be between $26.8 billion and $27.2 billion, with total Veklury sales estimated at $1.4 billion [15] - The Zacks Consensus Estimate for total product sales is pegged at $28.3 billion [15] Pipeline Updates - The FDA granted Breakthrough Therapy Designation to Trodelvy for treating extensive-stage small cell lung cancer [16] - Gilead submitted applications for lenacapavir for HIV prevention, which could enhance its HIV franchise [17] Dividend Announcement - Gilead announced a 2.6% increase in its quarterly cash dividend, resulting in a quarterly dividend of $0.79 per share starting in the first quarter of 2025 [18] Market Performance - Gilead's shares surged 34.8% over the past year, contrasting with an 11.7% decline in the industry [3]

Group 1 - Gilead Sciences Inc reported a strong fourth-quarter earnings beat with earnings per share (EPS) of $1.90, exceeding analyst estimates by 11.7%, and revenue of $7.57 billion, a 6.4% year-over-year increase [1] - The company provided solid fiscal 2025 guidance, forecasting revenue of $28.4 billion and adjusted EPS of $7.90, slightly above analyst projections [1] - Gilead increased its quarterly dividend to 79 cents per share [1] Group 2 - Following the earnings report, eight brokerages raised their price targets for Gilead, with Morgan Stanley setting the highest target at $124, up from $113 [2] - Despite strong fundamentals, 12 out of 29 analysts still rate Gilead stock as a "hold," with a consensus 12-month price target of $102.86, indicating a slim discount to current levels [2] - The stock has shown momentum, potentially challenging its nearly nine-year high of $101.51 reached on February 5, having gained 42.1% over the last nine months since a low of $62.07 on May 31 [3] Group 3 - Gilead's stock has a Schaeffer's Volatility Scorecard (SVS) ranking of 84 out of 100, indicating that it has tended to exceed options traders' volatility expectations over the past 12 months [3]

Group 1 - Brendan completed a Ph.D. at Stanford University in organic synthesis in 2009 [1] - He worked for Merck from 2009 to 2013 and has experience in biotech startups such as Theravance and Aspira [1] - Brendan is a co-founder of 1200 Pharma, which received significant investment in the eight figures as it spun out of Caltech [1] Group 2 - The article expresses the author's own opinions and indicates a beneficial long position in GILD shares [2] - There is no compensation received for the article other than from Seeking Alpha, and there is no business relationship with any mentioned company [2] Group 3 - The article does not provide any investment recommendations or advice, emphasizing that past performance does not guarantee future results [4]

Q4 & FY24 Financial Results 1 0 D e c e m b e r 2 0 2 4 F e b r u a r y 1 1 , 2 0 2 5 Forward-Looking Statements Statements included in this press release that are not historical in nature are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Gilead cautions readers that forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include those relating to: Gi ...

Financial Data and Key Metrics Changes - Total product sales for 2024 reached $28.6 billion, a 6% increase from 2023, exceeding guidance expectations [59][60] - Excluding Veklury, total product sales grew 8% year-over-year to $26.8 billion [59][60] - Non-GAAP EPS for 2024 was $4.62, reflecting a significant impact from the CymaBay acquisition [62][63] Business Line Data and Key Metrics Changes - HIV sales for 2024 were $19.6 billion, an 8% increase year-over-year, driven by Biktarvy's 13% growth [59][60] - Oncology sales increased 12% to $3.3 billion, primarily due to Trodelvy's growth [60][61] - Liver disease sales reached $3 billion, up 9% year-over-year, with strong performance from Livdelzi [30][60] Market Data and Key Metrics Changes - The HIV treatment market grew approximately 3% in 2024, while the prevention market accelerated over 16% year-over-year in Q4 [25][28] - Veklury sales declined 53% year-over-year in Q4, reflecting lower COVID-19 hospitalization rates [33][60] Company Strategy and Development Direction - The company aims to maintain leadership in the HIV market with a robust pipeline, including lenacapavir for prevention [9][10] - Gilead is focused on expanding its oncology portfolio, with multiple Phase 3 trials for Trodelvy and other therapies [48][49] - The company plans to leverage its diverse pipeline and maintain expense discipline to drive future growth [61][72] Management's Comments on Operating Environment and Future Outlook - Management anticipates a temporary masking of HIV revenue growth in 2025 due to Medicare Part D reform, estimating a $1.1 billion impact [27][67] - The company expects continued strong demand for its HIV products, despite anticipated revenue flatness in 2025 [28][67] - Management expressed confidence in the potential of lenacapavir and other pipeline products to drive future growth [41][42] Other Important Information - Gilead's R&D expenses for 2024 were $5.7 billion, reflecting consistent investment in clinical activities [61][62] - The company has 54 ongoing clinical programs, up from 32 in 2019, indicating a robust pipeline [17] Q&A Session Summary Question: Inquiry about the potential replacement of Biktarvy by lenacapavir in HIV treatment - Management indicated that while Biktarvy currently leads the market, there are opportunities for long-acting treatments to coexist and potentially erode Biktarvy's market share over time [78][86] Question: Clarification on guidance for lenacapavir in 2025 - Management confirmed that lenacapavir is expected to launch mid-year 2025, with access ramping up over time [89][90] Question: Concerns about consensus expectations for lenacapavir's launch - Management acknowledged the importance of access and administration logistics for lenacapavir, emphasizing confidence in its impact post-launch [97][99] Question: Inquiry about interactions with the FDA regarding lenacapavir - Management confirmed that interactions with the FDA are on track for a summer approval, with plans for a tiered approach to market access in Europe [107][110] Question: Reflections on the competitiveness of the oncology portfolio - Management expressed optimism about the late-stage oncology portfolio, particularly regarding Trodelvy and ongoing Phase 3 trials [113]

Group 1 - Gilead Sciences reported quarterly earnings of $1.90 per share, exceeding the Zacks Consensus Estimate of $1.67 per share, and showing an increase from $1.72 per share a year ago, representing an earnings surprise of 13.77% [1] - The company achieved revenues of $7.57 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 7.27%, and an increase from $7.12 billion year-over-year [2] - Gilead has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Group 2 - The stock's immediate price movement will depend on management's commentary during the earnings call and future earnings expectations [3] - Gilead shares have increased by approximately 3.4% since the beginning of the year, compared to a 3.1% gain in the S&P 500 [3] Group 3 - The current consensus EPS estimate for the upcoming quarter is $1.82 on revenues of $6.66 billion, and for the current fiscal year, it is $7.59 on revenues of $28.27 billion [7] - The Zacks Industry Rank for Medical - Biomedical and Genetics is in the top 26% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Gilead Sciences reported strong fourth-quarter earnings with significant growth in its HIV and oncology segments.Gilead Sciences (GILD 0.69%), a major player in the biotechnology sector, reported fourth-quarter and full-year 2024 earnings on Tuesday, Feb. 11, that topped analysts' consensus estimates. Adjusted earnings per share of $1.90 came in well ahead of the estimated $1.74. Revenue for the quarter hit $7.57 billion compared to the expected $7.15 billion. A key highlight was the robust performance in t ...