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 ...

Sales Performance - Total product sales for full year 2024 increased 6% to $28.6 billion compared to 2023, with product sales excluding Veklury increasing 8% to $26.8 billion[13] - HIV product sales for full year 2024 increased 8% to $19.6 billion, driven by higher demand and increased average realized price[13] - Biktarvy sales increased 13% to $13.4 billion for full year 2024, primarily due to higher demand[18] - Total fourth quarter 2024 product sales increased 7% to $7.5 billion compared to the same period in 2023, with sales excluding Veklury increasing 13% to $7.2 billion[4] - Total revenues for Q4 2024 were $7,569 million, a 6% increase from $7,115 million in Q4 2023[41] - Product sales reached $7,536 million in Q4 2024, up 7% from $7,070 million in Q4 2023[41] - HIV product sales increased by 16% to $5,452 million in Q4 2024 compared to $4,693 million in Q4 2023[41] - Total product sales for the twelve months ended December 31, 2024, reached $28,610 million, compared to $26,934 million for the same period in 2023, a growth of 6.2%[56] Financial Performance - Diluted EPS for fourth quarter 2024 increased to $1.42 compared to $1.14 in the same period in 2023, driven by lower costs of goods sold and higher product sales[6] - Operating income for Q4 2024 was $2,451 million, with an operating margin of 32.4%, compared to 22.7% in Q4 2023[41] - Net income attributable to Gilead for Q4 2024 was $1,783 million, an increase from $1,429 million in Q4 2023[41] - Basic earnings per share attributable to Gilead were $1.43 for Q4 2024, up from $1.15 in Q4 2023[41] - GAAP operating income increased to $2,451 million in Q4 2024 from $1,612 million in Q4 2023, while non-GAAP operating income rose to $3,114 million from $2,739 million[45] - Non-GAAP net income attributable to Gilead for Q4 2024 was $2,390 million, compared to $2,161 million in Q4 2023, with GAAP net income at $1,783 million versus $1,429 million[45] Research and Development - R&D expenses for full year 2024 were $5.9 billion, reflecting incremental investments and clinical activities across the portfolio[18] - Research and development expenses for Q4 2024 were $1,641 million, representing 21.7% of total revenues, up from 19.8% in Q4 2023[41] - Presented full results from the Phase 3 PURPOSE 2 trial for investigational twice-yearly lenacapavir for HIV prevention, published in the New England Journal of Medicine[26] - Completed New Drug Application submissions to the FDA and EMA for twice-yearly lenacapavir for HIV prevention[26] - Received Breakthrough Therapy Designation from the FDA for Trodelvy in treating extensive-stage small cell lung cancer[26] - Entered into a collaboration with Tubulis to develop an antibody-drug conjugate candidate for solid tumors[26] - Announced a strategic partnership with LEO Pharma to develop a pre-clinical oral STAT6 program for inflammatory diseases[26] - Entered into a strategic research collaboration with Terray to discover novel small molecule therapies using AI[26] Cash Flow and Assets - Cash dividends declared per share increased to $0.77 in Q4 2024 from $0.75 in Q4 2023[41] - Net cash provided by operating activities for the twelve months ended December 31, 2024, was $10,828 million, up from $8,006 million in 2023[51] - Free cash flow for the twelve months ended December 31, 2024, was $10,305 million, compared to $7,421 million in 2023[51] - Total assets decreased from $62,125 million in 2023 to $58,995 million in 2024[49] - Cash and cash equivalents increased from $6,085 million at the end of 2023 to $9,991 million at the end of 2024[51] Future Guidance - For full-year 2025, Gilead expects product sales to be between $28.2 billion and $28.6 billion, with diluted EPS guidance of $5.95 to $6.35[20] - Projected non-GAAP product gross margin is expected to be between 85.0% and 86.0%, compared to GAAP projected gross margin of 77.0% to 78.0%[47] - GAAP projected operating income is estimated to be between $10,200 million and $10,700 million, while non-GAAP projected operating income is expected to be between $12,700 million and $13,200 million[47] - The projected effective tax rate is approximately 20% for GAAP, while the non-GAAP effective tax rate is expected to be around 19%[47] - GAAP projected diluted EPS is estimated to be between $5.95 and $6.35, with non-GAAP projected diluted EPS expected to be between $7.70 and $8.10[47] Market Performance - Total product sales for the U.S. reached $5,550 million in Q4 2024, an increase from $5,180 million in Q4 2023, representing a growth of 7.1%[56] - Total product sales in Europe were $1,160 million for Q4 2024, slightly up from $1,128 million in Q4 2023, indicating a growth of 2.8%[56] - Total product sales in the Rest of World segment increased to $826 million in Q4 2024 from $762 million in Q4 2023, reflecting a growth of 8.4%[56] - Total Oncology sales in the U.S. were $461 million for Q4 2024, down from $479 million in Q4 2023, a decline of 3.8%[56] - Total Cell Therapy sales in the U.S. decreased to $213 million in Q4 2024 from $253 million in Q4 2023, a decline of 15.8%[56] - Trodelvy sales in the U.S. increased to $247 million in Q4 2024, up from $226 million in Q4 2023, representing a growth of 9.3%[56] - Total Oncology sales in Europe increased to $269 million in Q4 2024 from $216 million in Q4 2023, a growth of 24.5%[56] - Total Cell Therapy sales for the twelve months ended December 31, 2024, were $1,973 million, up from $1,869 million in 2023, reflecting a growth of 5.6%[56] - Trodelvy sales for the twelve months ended December 31, 2024, reached $1,315 million, an increase from $1,063 million in 2023, representing a growth of 23.7%[56]

Gilead Sciences (NASDAQ: GILD ) is a market leader for HIV drug manufacturing, urgently diversifying its product portfolio as its blockbuster drugs lose exclusivity in 2033. At $85, the stock would price in 2% revenue growth, which would be in line withI am an individual investor and student of value investing. I specialize in strategic analysis of situations, trying to assess stocks with common sense and simple valuation models to add robustness to my thinking. I am sector agnostic and my primary focus in ...

Core Viewpoint - Gilead Sciences, Inc. is expected to report its fourth-quarter and full-year 2024 results on February 11, with sales and earnings estimates at $7.06 billion and $1.66 per share respectively [1] Earnings Performance - Gilead has beaten earnings estimates in three of the last four quarters, with an average surprise of 15.46% [2] Earnings Prediction - The model predicts an earnings beat for Gilead, supported by a positive Earnings ESP of +1.70% and a Zacks Rank of 3 (Hold) [3] Factors Influencing Q4 Results - Gilead's HIV franchise, particularly Biktarvy and Descovy, is expected to drive sales, with Biktarvy sales estimated at $3.46 billion and Descovy at $574 million [4][5] - The Liver Disease portfolio is likely to benefit from increased demand for viral hepatitis medicines and the launch of Livdelzi for primary biliary cholangitis [5][6] Sales Estimates - Sales for Cell Therapy products are estimated at $480 million, with a potential decrease due to competitive pressures [7] - Trodelvy sales are estimated at $282 million, with potential impacts from market conditions [8][9] Recent Developments - Trodelvy received Breakthrough Therapy Designation from the FDA for extensive-stage small cell lung cancer [10] - The European Medicines Agency recommended seladelpar for PBC treatment, with a final decision expected in Q1 2025 [11] Stock Performance - Gilead's shares have increased by 31.8% over the past year, contrasting with a 6.3% decline in the industry [14]

Wall Street analysts expect Gilead Sciences (GILD) to post quarterly earnings of $1.66 per share in its upcoming report, which indicates a year-over-year decline of 3.5%. Revenues are expected to be $7.06 billion, down 0.8% from the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 10.7% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Ahead of a company's earnin ...