Core Insights - The Medical sector's first-quarter 2025 earnings season is gaining momentum, with strong initial results from Johnson & Johnson, which exceeded earnings and sales estimates and raised its sales guidance for the year [1] - As of April 16, 3.3% of Medical sector companies reported earnings, with 100% surpassing earnings estimates and 50% exceeding revenue estimates, indicating a positive trend for the sector [1] - Overall, first-quarter earnings for the Medical sector are projected to increase by 34.7%, while sales are expected to rise by 7.5% compared to the previous year [1] Gilead Sciences - Gilead Sciences has a strong earnings track record, beating estimates in the last four quarters with an average surprise of 19.47% [3] - For Q1 2025, Gilead has an Earnings ESP of +3.07% and a Zacks Rank of 3, with consensus earnings estimated at $1.73 per share [5] - The company's revenue is expected to be supported by its HIV therapies, although it may face challenges due to the new Medicare Part D model affecting discounts [6][7] Bristol Myers - Bristol Myers has also shown a solid earnings performance, beating estimates in the last four quarters with an average surprise of 16.18% [8] - For the upcoming quarter, Bristol Myers has an Earnings ESP of -0.51% and a Zacks Rank of 3, with consensus earnings estimated at $1.54 per share [8] - Revenue is anticipated to be impacted by declining sales from legacy drugs, but this may be offset by growth in newer products [9] Merck - Merck has a favorable earnings history, beating estimates in the last four quarters with an average surprise of 4.68% [11] - For Q1 2025, Merck has an Earnings ESP of -2.04% and a Zacks Rank of 3, with consensus earnings estimated at $2.16 per share [11] - Revenue growth is expected to be driven by the strong performance of its cancer drug Keytruda, although international sales of the HPV vaccine Gardasil may be negatively affected [12] AbbVie - AbbVie has consistently beaten earnings estimates, with an average surprise of 2.37% over the last four quarters [13] - For the upcoming quarter, AbbVie has an Earnings ESP of -3.61% and a Zacks Rank of 3, with consensus earnings estimated at $2.47 per share [13] - The company's revenue is likely to be bolstered by strong sales of key drugs and contributions from newer products [14] Sanofi - Sanofi has a mixed earnings record, beating estimates in two of the last four quarters, with an average surprise of 5.14% [15] - For Q1 2025, Sanofi has an Earnings ESP of +1.62% and a Zacks Rank of 3, with consensus earnings estimated at 90 cents per share [15] - Revenue is expected to benefit from higher sales of Dupixent and new products, although lower flu vaccine sales and generic competition may pose challenges [16]