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Gilead (GILD) Gears Up to Report Q2 Earnings: What's in Store?
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Biotech major Gilead Sciences Inc. (GILD - Free Report) is set to report second-quarter 2023 results on Aug 3, after market close.
The company has a decent track record, with earnings beating estimates in three of the last four quarters and missing in the remaining one, the average beat being 7.99%. In the last reported quarter, the company missed expectations by 15.95%.
Gilead Sciences, Inc. Price, Consensus and EPS Surprise
Revenues in the second quarter have most likely been boosted by increased sales in oncology and HIV franchises, as in the first quarter. However, a decline in Veklury (remdesivir) sales is likely to have dented this growth slightly.
Sales in the HIV franchise are being driven by higher demand for the flagship HIV therapies Biktarvy and Descovy. Biktarvy’s sales increased 24% year over year in the previous quarter due to higher demand and the trend is likely to have continued in the to-be-reported quarter.
Descovy’s revenues are being boosted by higher demand and favorable pricing dynamics and the momentum is likely to have continued in the second quarter.
The Zacks Consensus Estimate for sales of Biktarvy and Descovy is pegged at $2.8 billion and $491 million, respectively. Our model estimates for the same are $2.7 billion and $497 million, respectively.
The Liver Disease portfolio sales, including chronic hepatitis C virus (“HCV”), chronic hepatitis B virus (“HBV”) and chronic hepatitis delta virus (“HDV”), increased in the previous quarter, driven by higher demand and timing of purchases in the United States. The trend has most likely continued in the second quarter.
Sales of Veklury are likely to have seen a decline.
Cell Therapy product sales are likely to have soared in the second quarter. Yescarta sales are primarily being driven by increased demand for relapsed or refractory (“R/R”) large B-cell lymphoma (“LBCL”) in the United States and Europe. Tecartus (brexucabtagene autoleucel) sales are being driven by increased demand in adult R/R B-cell precursor acute lymphoblastic leukemia (“ALL”) and mantle cell lymphoma (“MCL”) in the United States and Europe. Sales are likely to have experienced a sequential increase, driven by the label expansions of Yescarta and Tecartus.
The Zacks Consensus Estimate for Cell Therapy product sales is $476 million and our estimate for the same is $489.2 million.
Increased sales of Trodelvy, reflecting continued uptake in metastatic triple-negative breast cancer, have also likely boosted sales in the second quarter.
The Zacks Consensus Estimate for Trodelvy sales is $242 million and our estimate for the same is $235 million.
Operating expenses are also likely to have increased in the second quarter.
Pipeline & Regulatory Updates
Apart from the regular top- and bottom-line numbers, we expect investors to focus on key pipeline updates when the company reports.
The European Commission (EC) approved Trodelvy as a monotherapy for the treatment of adult patients with unresectable or metastatic hormone receptor (HR)-positive, HER2-negative breast cancer who have received endocrine-based therapy and at least two additional systemic therapies in the advanced setting. Approval in additional geographies will boost sales of the drug.
Share Price Performance
Gilead’s stock has lost 11% in the past year compared with the industry's decline of 12%.
Image Source: Zacks Investment Research
What Our Model Predicts
Our proven model does not conclusively predict 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. That is not the case here, as you will see below.
Earnings ESP: Earnings ESP for GILD is -4.65% as the Zacks Consensus Estimate currently stands at $1.61 per share and the Most Accurate Estimate is currently pegged at $1.54 per share. 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.
Stocks to Consider
Here are some drug and biotech stocks you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat this season.
ACAD topped earnings estimates in two of the last four quarters and missed in the remaining two quarters, with a four-quarter earnings surprise of -2.75%, on average.
Sarepta Therapeutics (SRPT - Free Report) has an Earnings ESP of +8.01% and a Zacks Rank #3.
Sarepta beat earnings estimates in two of the trailing four quarters and missed in the remaining two. It delivered a negative earnings surprise of 63.49%.
Novo Nordisk (NVO - Free Report) has an Earnings ESP of +4.63% and a Zacks Rank #3. NVO beat earnings estimates in all of the last four quarters, the average earnings surprise being 0.35%.
Image: Bigstock
Gilead (GILD) Gears Up to Report Q2 Earnings: What's in Store?
Biotech major Gilead Sciences Inc. (GILD - Free Report) is set to report second-quarter 2023 results on Aug 3, after market close.
The company has a decent track record, with earnings beating estimates in three of the last four quarters and missing in the remaining one, the average beat being 7.99%. In the last reported quarter, the company missed expectations by 15.95%.
Gilead Sciences, Inc. Price, Consensus and EPS Surprise
Gilead Sciences, Inc. price-consensus-eps-surprise-chart | Gilead Sciences, Inc. Quote
Factors to Note
Revenues in the second quarter have most likely been boosted by increased sales in oncology and HIV franchises, as in the first quarter. However, a decline in Veklury (remdesivir) sales is likely to have dented this growth slightly.
Sales in the HIV franchise are being driven by higher demand for the flagship HIV therapies Biktarvy and Descovy. Biktarvy’s sales increased 24% year over year in the previous quarter due to higher demand and the trend is likely to have continued in the to-be-reported quarter.
Descovy’s revenues are being boosted by higher demand and favorable pricing dynamics and the momentum is likely to have continued in the second quarter.
The Zacks Consensus Estimate for sales of Biktarvy and Descovy is pegged at $2.8 billion and $491 million, respectively. Our model estimates for the same are $2.7 billion and $497 million, respectively.
The Liver Disease portfolio sales, including chronic hepatitis C virus (“HCV”), chronic hepatitis B virus (“HBV”) and chronic hepatitis delta virus (“HDV”), increased in the previous quarter, driven by higher demand and timing of purchases in the United States. The trend has most likely continued in the second quarter.
Sales of Veklury are likely to have seen a decline.
Cell Therapy product sales are likely to have soared in the second quarter. Yescarta sales are primarily being driven by increased demand for relapsed or refractory (“R/R”) large B-cell lymphoma (“LBCL”) in the United States and Europe. Tecartus (brexucabtagene autoleucel) sales are being driven by increased demand in adult R/R B-cell precursor acute lymphoblastic leukemia (“ALL”) and mantle cell lymphoma (“MCL”) in the United States and Europe. Sales are likely to have experienced a sequential increase, driven by the label expansions of Yescarta and Tecartus.
The Zacks Consensus Estimate for Cell Therapy product sales is $476 million and our estimate for the same is $489.2 million.
Increased sales of Trodelvy, reflecting continued uptake in metastatic triple-negative breast cancer, have also likely boosted sales in the second quarter.
The Zacks Consensus Estimate for Trodelvy sales is $242 million and our estimate for the same is $235 million.
Operating expenses are also likely to have increased in the second quarter.
Pipeline & Regulatory Updates
Apart from the regular top- and bottom-line numbers, we expect investors to focus on key pipeline updates when the company reports.
The European Commission (EC) approved Trodelvy as a monotherapy for the treatment of adult patients with unresectable or metastatic hormone receptor (HR)-positive, HER2-negative breast cancer who have received endocrine-based therapy and at least two additional systemic therapies in the advanced setting. Approval in additional geographies will boost sales of the drug.
Share Price Performance
Gilead’s stock has lost 11% in the past year compared with the industry's decline of 12%.
Image Source: Zacks Investment Research
What Our Model Predicts
Our proven model does not conclusively predict 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. That is not the case here, as you will see below.
Earnings ESP: Earnings ESP for GILD is -4.65% as the Zacks Consensus Estimate currently stands at $1.61 per share and the Most Accurate Estimate is currently pegged at $1.54 per share. 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.
Stocks to Consider
Here are some drug and biotech stocks you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat this season.
ACADIA Pharmaceuticals (ACAD - Free Report) has an Earnings ESP of +38.26% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
ACAD topped earnings estimates in two of the last four quarters and missed in the remaining two quarters, with a four-quarter earnings surprise of -2.75%, on average.
Sarepta Therapeutics (SRPT - Free Report) has an Earnings ESP of +8.01% and a Zacks Rank #3.
Sarepta beat earnings estimates in two of the trailing four quarters and missed in the remaining two. It delivered a negative earnings surprise of 63.49%.
Novo Nordisk (NVO - Free Report) has an Earnings ESP of +4.63% and a Zacks Rank #3.
NVO beat earnings estimates in all of the last four quarters, the average earnings surprise being 0.35%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.