Core Viewpoint - Analysts expect Gilead Sciences (GILD) to report quarterly earnings of $1.95 per share, reflecting a year-over-year decline of 3%, with revenues projected at $6.95 billion, down 0.1% from the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised 1.1% higher in the last 30 days, indicating a collective reevaluation by analysts [1][2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [2]. Revenue Projections - Analysts project 'Revenues- Royalty contract and other revenues' to reach $38.09 million, indicating a decline of 7.1% year-over-year [3]. - The average prediction for 'Total product sales- Total' is $6.91 billion, showing no change from the prior year [4]. Product Sales Estimates - 'Product Sales- Oncology- Cell Therapy- Tecartus- Total' is estimated at $92.76 million, reflecting a decrease of 13.3% from the previous year [4]. - 'Product Sales- Veklury- Total' is expected to be $211.34 million, down 1.2% year-over-year, while 'Product Sales- HIV- Odefsey- U.S.' is projected at $215.50 million, down 7.5% [5]. - 'Product Sales- Other- Other- U.S.' is anticipated to be $54.28 million, indicating a significant decline of 44.6% [5]. - 'Product Sales- HIV- Descovy- U.S.' is expected to reach $509.35 million, reflecting a growth of 17.4% year-over-year [6]. - 'Product Sales- Oncology- Trodelvy- U.S.' is projected at $224.58 million, showing a slight increase of 0.3% [6]. - 'Product Sales- Oncology- Cell Therapy- Tecartus- U.S.' is estimated at $49.56 million, down 21.3% year-over-year [7]. - 'Product Sales- Liver Disease- Sofosbuvir / Velpatasvir- U.S.' is expected to be $225.96 million, down 15.4% [7]. - 'Product Sales- HIV- Genvoya- U.S.' is projected at $333.57 million, reflecting a decline of 10.3% [8]. - 'Product Sales- Veklury- U.S.' is expected to reach $69.13 million, down 9% year-over-year [8]. Market Performance - Gilead shares have increased by 1.3% over the past month, compared to a 0.6% increase in the Zacks S&P 500 composite [8].

Strategic Transformation & Growth - Gilead is making meaningful progress on strategic transformation with a strong 2023 execution, leading to a catalyst-rich 2024[5, 11, 28, 65] - The company's pipeline has grown by 88% since 2019, positioning it to deliver 10+ new transformative therapies by the end of 2030[18, 19] - Gilead's base business has returned to consistent growth, with an expected 7-8% year-over-year growth in 2023 driven by HIV and Oncology[21, 22] Oncology - Gilead is accelerating its oncology business, aiming for >$3 billion/year[7, 13, 30, 67] - Oncology revenue has grown significantly, reaching ~$3 billion in FY23, representing ~12% of total revenue compared to 2% in FY19[36] - Trodelvy programs reinforce pan-tumor potential, with >30 active or planned trials and >30,000 patients treated[40, 41] - In 1L mNSCLC, Trodelvy plus pembrolizumab demonstrated a strong 69% ORR in PD-L1 TPS>50% and 44% ORR in PD-L1 TPS<50% in the Phase 2 EVOKE-02 trial[48] - Yescarta is the 1 cell therapy in 2L+ LBCL with long-term, 5-year OS of 43% in 3L LBCL and delivered >6,000 cell therapies to patients in 2023[54] HIV - Gilead has a leading HIV portfolio poised for durable growth[9, 15, 32, 69] - Biktarvy is a global leader in HIV treatment, with >47% U S market share in Q3 2023 and projected U S and EU LOE in 2033[72, 73] - The company has an industry-leading HIV development portfolio with 10 clinical programs with lenacapavir[75, 76] - Gilead anticipates 5 potential new HIV product launches by 2030 in treatment & PrEP[17, 71, 78]

Commercial Execution & Market Opportunity - Kite has a broad global ATC footprint with unrivaled patient reach across 420+ ATCs in 25+ countries[14, 34] - The cell therapy market has significant untapped potential, with opportunities to drive market growth in Europe, where 2L+ class share is approximately 20%[38, 41] - Kite's global commercial strategy aims to grow class share by bringing treatment closer to patients and breaking down referral barriers[43] - The company is advancing its portfolio into $40 billion+ markets, including lymphoma & leukemia ($10B-$12B), multiple myeloma ($15B-$20B), and autoimmune diseases ($15B-$20B)[20, 21] Manufacturing Excellence - Kite boasts an industry-leading 14-day turnaround time in the U S for Yescarta and a 96% manufacturing success rate[14, 10] - The company has >24,000 manufacturing capacity by 2026 and >1 million square feet of manufacturing and R&D space[103, 104] - Kite is targeting a biologics product gross margin of approximately 80% in the U S by 2030 through operational excellence and cost improvements[136] - Plans are rapidly advancing for anito-cel manufacturing, leveraging Kite's existing capabilities to achieve similar turnaround times and success rates to Yescarta[137, 140] Clinical Development & Pipeline - Yescarta demonstrates statistically significant overall survival (OS) vs Salvage ± HDCT + ASCT in 2L LBCL, with 43% of patients alive at 5 years in 3L+ LBCL[47] - In ZUMA-7, Yescarta showed a 27% reduction in the risk of death (OS HR 0 726, p=0 0168) and a >4x median EFS in 2L LBCL[197] - The company is developing KITE-753, a CD19/CD20 dual-targeting CAR T with a rapid manufacturing process (3 days) to preserve T cell stemness[228, 231]

Core Viewpoint - Investing in dividend stocks requires attention to a company's underlying operations rather than just high yields, with AbbVie and Gilead Sciences being highlighted as strong candidates for income investors [1][2]. Group 1: AbbVie - AbbVie is recognized as a "Dividend King," having raised its payouts for 53 consecutive years, making it a strong consideration for income investors [4]. - The company is well-known for its immunology drugs, particularly Skyrizi and Rinvoq, which have shown unexpectedly rapid sales growth [5][6]. - Following the loss of patent exclusivity for Humira, AbbVie has successfully returned to top-line growth, with a revised 2027 sales guidance for Skyrizi and Rinvoq exceeding $31 billion, up from $27 billion [6]. - AbbVie has a robust pipeline with numerous programs that are expected to lead to further approvals and label expansions, supporting its strong business fundamentals [8]. - The forward yield for AbbVie is over 3.5%, significantly higher than the S&P 500 average of 1.3%, indicating its potential as a long-term dividend stock [8]. Group 2: Gilead Sciences - Gilead Sciences is a leading drugmaker, particularly known for its dominance in the HIV market, with a revenue of $6.7 billion in the first quarter, despite flat overall sales due to lower Veklury sales [9]. - The HIV segment grew by 6% year-over-year, generating $4.6 billion, with Biktarvy being the top prescribed regimen in the U.S. [10]. - Gilead is diversifying its portfolio beyond HIV, with a focus on oncology, where over a third of its 58 pipeline programs are concentrated [12]. - The forward yield for Gilead is 3.2%, and the company has increased its dividends by nearly 84% over the past decade, making it an attractive option for long-term income-seeking investors [13].

Core Insights - The current global trade environment is marked by rising tariffs and tensions, prompting investors to seek stability in defensive sectors that are less impacted by economic fluctuations [1][2] - Large-cap biotech companies with a strong domestic focus, such as Gilead Sciences, Amgen, and AbbVie, are gaining attention as potential defensive investments due to their reliance on the U.S. market [2][3] Biotech Companies Overview - Gilead Sciences derives approximately 70.0% of its Q1 2025 product revenue from the U.S., Amgen generates about 74.7% of its Q4 2024 product sales domestically, and AbbVie obtains roughly 74.8% of its Q1 2025 net revenue from the United States [3][4] - The significant concentration of domestic sales provides a buffer against retaliatory tariffs and economic downturns, as demand for essential medicines tends to be inelastic [4][5] Financial Performance and Stability - Gilead Sciences has a market capitalization of around $132.66 billion, with a year-to-date stock gain of 15.3% and a low Beta of approximately 0.32, indicating defensive characteristics [11][13] - Amgen, valued at approximately $156.41 billion, reported a positive year-to-date performance of +11.6% and a Beta of 0.59, suggesting lower volatility [15][16] - AbbVie has a market capitalization of roughly $345.22 billion, achieving a 9.8% operational revenue increase in Q1 2025, with a forward P/E ratio of about 15.85 [18][19] Policy Environment - Recent U.S. government policy shifts are creating a supportive environment for domestic biotech companies, focusing on onshoring and reshoring manufacturing to enhance supply chain resilience [6][8] - Strategies include financial incentives, direct government investments, and prioritizing domestically produced medicines through 'Buy American' initiatives [7][8] Investment Appeal - The combination of strong cash flows, healthy dividends, and low Beta scores makes U.S.-focused biotech companies appealing during uncertain times [21][20] - Analysts have a Moderate Buy consensus on Gilead and AbbVie, while Amgen is rated as a Hold, reflecting confidence in their defensive qualities amidst market volatility [11][19][15]

Core Insights - Gilead Sciences reported a mixed first quarter, with a revenue of $6.67 billion, remaining flat compared to the same quarter of 2024, leading to a decline in share price by over 2% [1][2][4] Revenue Performance - The revenue of $6.67 billion was attributed to declines in sales of the COVID drug Veklury and oncology products, which were offset by improvements in liver disease and HIV medications [2] - Analysts had projected revenue of $6.78 billion, indicating that Gilead's performance fell short of expectations [4] Profitability - Gilead achieved a non-GAAP net income of just under $2.3 billion, or $1.81 per share, a significant turnaround from a loss of $1.6 billion in the previous year [3] - The first quarter results were impacted by the acquisition of CymaBay Therapeutics and a $2.4 billion impairment related to a previous deal with Immunomedics [3] Guidance Adjustments - Gilead revised its full-year earnings per share guidance for 2025 to a range of $5.65 to $6.05, down from the previous forecast of $5.95 to $6.35, which disappointed some investors [5] - The adjusted profitability estimate remained unchanged at $7.70 to $8.10 per share, with revenue expectations still set at $28.2 billion to $28.6 billion [5]

Financial Performance - Total product sales, excluding Veklury, increased by 4% year-over-year (YoY) to $6.3 billion[9, 13] - Total HIV product sales increased by 6% YoY, driven by pricing and demand, reaching $4.6 billion[9, 13] - Biktarvy sales increased by 7% YoY, reaching $3.1 billion[9, 17] - Descovy sales increased significantly by 38% YoY, reaching $586 million[9, 17] - Liver disease product sales increased by 3% YoY, reaching $758 million, driven by increased demand across PBC, HBV, and HDV products[13, 20] - Veklury sales decreased by 45% YoY to $302 million, reflecting lower COVID-19 related hospitalizations[13, 23] - Cell Therapy product sales decreased by 4% YoY to $464 million[13] Product & Pipeline Updates - Trodelvy sales decreased by 5% YoY to $293 million due to inventory dynamics and pricing[9, 13] - Livdelzi sales reached $40 million in Q125, showing continued launch momentum in PBC[9, 19] - Positive topline Phase 3 ASCENT-04 data evaluating Trodelvy + pembrolizumab in 1L PD-L1+ mTNBC[9] - Livdelzi received EU approval in February 2025 for PBC, including related pruritus[9, 38]

Core Viewpoint - Analysts expect Gilead Sciences to report quarterly earnings of $1.73 per share, reflecting a year-over-year increase of 231.1%, with revenues projected at $6.83 billion, up 2.2% from the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised upward by 0.9% in the past 30 days, indicating a reassessment of initial estimates by covering analysts [1][2]. Revenue and Product Sales Projections - Total product sales are expected to reach $6.75 billion, indicating a year-over-year change of +1.6% [4]. - Royalty contract and other revenues are estimated at $40.04 million, reflecting a +2.7% change from the prior year [4]. - Product Sales for HIV (Genvoya) are projected at $375.96 million, showing a decline of -6.7% year over year [4]. - Product Sales for HIV (Odefsey) are expected to be $294.72 million, down -4.9% from the previous year [5]. - Oncology product sales (Tecartus) are forecasted at $56.12 million, indicating a +2% change [5]. - Liver Disease product sales (Sofosbuvir/Velpatasvir) are estimated at $238.12 million, down -4% from the year-ago quarter [6]. - Other product sales (Other) are projected at $40.07 million, reflecting a significant decline of -32.1% [6]. - Total HIV product sales in the U.S. are expected to reach $3.56 billion, indicating a +4.6% change year over year [7]. Additional Product Sales Insights - Product Sales for HIV (Genvoya) in the U.S. are projected at $299.29 million, down -9.9% from the previous year [7]. - Liver Disease product sales (Vemlidy) are expected to be $96.60 million, reflecting a +1.7% change [8]. - Other product sales (AmBisome) are projected at $11.31 million, down -19.2% from the prior year [8]. - Product Sales for Veklury are expected to be $277.30 million, indicating a -12% change year over year [8]. Stock Performance - Gilead shares have experienced a -1.3% change over the past month, compared to a -6.9% move in the Zacks S&P 500 composite [9].

Core Viewpoint - Gilead Sciences, Inc. is set to report its Q1 2025 results, with sales and earnings estimates at $6.83 billion and $1.73 per share, respectively, reflecting a positive trend in earnings estimates for 2025 and 2026 [1][4]. Financial Performance - The earnings surprise history shows Gilead has consistently beaten estimates in the last four quarters, with an average surprise of 19.47% [2][3]. - The current earnings ESP for Gilead is +3.07%, and it holds a Zacks Rank of 3 (Hold) [4]. Factors Influencing Q1 Results - Gilead's HIV franchise, particularly Biktarvy and Descovy, has been a significant driver of revenue, with estimated sales of $3.2 billion and $479 million, respectively [6][8]. - The new Medicare Part D model may have negatively impacted sales due to required discounts for Medicare patients [7]. - The Liver Disease portfolio is expected to benefit from increased demand for viral hepatitis medicines, with new drug Livdelzi contributing positively [9][12]. - Sales from Cell Therapy products are anticipated to decline due to competitive pressures, with estimates at $491 million [10]. - Trodelvy is expected to show strong demand, with sales estimates of $354 million [11]. Recent Developments - Gilead's application for lenacapavir is under review in the U.S. and EU, with a target action date set for June 19, 2025 [12]. - The company has received conditional marketing authorization for seladelpar in the EU [12]. Market Performance - Gilead's shares have increased by 14.4% year-to-date, outperforming the industry and the S&P 500 [13][14]. - The current price/earnings ratio is 13.13x forward earnings, higher than its historical mean but lower than the large-cap pharma industry average [16]. Investment Thesis - Gilead's strong HIV portfolio and ongoing innovation efforts are viewed positively, although there may be slight pressure on HIV sales in 2025 [18]. - The oncology portfolio, including Trodelvy, is diversifying the business, but the Cell Therapy franchise faces competitive challenges [19]. - Strategic deals and collaborations, such as with Merck, are seen as encouraging for future growth [20].