Biotech major Gilead Sciences Inc. (GILD - Free Report) is set to report third-quarter 2022 results on Oct 27, after market close.
The company has a good track record, with earnings beating estimates in three of the last four quarters and missing in one, with the average beat being 5.90%. In the last reported quarter, the company beat expectations by 4.64%.
Factors to Note
Gilead did not provide any guidance for the third quarter.
HIV franchise sales increased 7% in the last reported quarter, driven by higher demand for flagship HIV therapy Biktarvy and favorable pricing dynamics, which more than offset the decline in sales due to the loss of exclusivity of Truvada and Atripla. Biktarvy’s sales increased 28% year over year in the second quarter due to higher demand, and the trend is likely to have continued in the third quarter. Descovy’s revenues increased 6% year over year, driven by higher demand and channel mix. The momentum is likely to have continued in the third quarter.
On the second-quarter earnings call, management stated that Biktarvy remains the leading regimen for new starts and switches in the United States and new starts in Europe.
The Zacks Consensus Estimate for sales of Biktarvy and Descovy is pegged at $2.6 billion and $453 million, respectively. Our estimates for the same are $2.6 billion and $427, respectively.
Hepatitis C virus product sales have been declining for quite some time now, and the second quarter saw an 18% decline due to a lower average realized price and fewer patient starts. The trend is likely to have continued in the third quarter.
Sales of Veklury (remdesivir), an antiviral treatment for COVID-19, plunged 46% in the second quarter and the third quarter is likely to have seen a significant sequential decline as the need for medications fell with a rise in general immunity to this virus. Gilead expects total Veklury sales of approximately $2.5 billion for 2022, of which $2 billion has already been recorded in the first half.
Cell Therapy product sales, which include Yescarta (axicabtagene ciloleucel) and Tecartus (brexucabtagene autoleucel), were up 68% in the previous quarter. Sales are likely to have experienced a sequential increase, driven by label expansions of Yescarta and Tecartus. The Zacks Consensus Estimate for Cell Therapy product sales stands at $365 million and our estimate is $444 million.
Sales of Trodelvy (for breast cancer) surged 79% in the second quarter, reflecting continued uptake in the second-line setting for the treatment of metastatic triple-negative breast cancer (TNBC) in the United States and Europe, as well as metastatic urothelial cancer in the United States. The drug was added following the acquisition of Immunomedics by Gilead in 2020. Sales are likely to have registered a sequential increase on increased demand.
Hepatitis B virus and hepatitis delta virus product sales decreased 1% in the second quarter and the third quarter is likely to have seen a similar trend.
Operating expenses are likely to have increased due to higher investments in the oncology program.
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.
Gilead’s HIV treatment Sunlenca (lenacapavir) has been approved by the European Commission for treating HIV infection, in combination with other antiretroviral(s), in adults with multi-drug resistant HIV infection for whom it is otherwise not possible to construct a suppressive anti-viral regimen.
The FDA also accepted the company’s new drug application resubmission for lenacapavir. The agency has assigned a target action date of Dec 27, 2022. Additional regulatory filings and decisions by regulatory authorities are anticipated later in 2022.
Share Price Performance
Gilead’s stock has lost 4.3% in the year so far compared with the industry's decline of 25.4%.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Gilead in this reporting cycle. 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. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Gilead has an Earnings ESP of -2.74%. This is because the Most Accurate Estimate stands at $1.42 while the Zacks Consensus Estimate stands at $1.46;
Zacks Rank: Gilead 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 these have the right combination of elements to post an earnings beat this season.
Editas Medicine (EDIT - Free Report) has an Earnings ESP of +3.47% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings of EDIT beat estimates in each of the trailing four quarters. It delivered an earnings surprise of 17.82%, on average.
Acadia Pharmaceuticals (ACAD - Free Report) has an Earnings ESP of +6.47% and a Zacks Rank #3.
Acadia topped earnings estimates in two of the last four quarters and has a four-quarter earnings surprise of 6.83%, on average.
Jazz Pharmaceuticals (JAZZ - Free Report) has an Earnings ESP of +2.12% and a Zacks Rank #2.
JAZZ beat earnings estimate in three of the last four quarters, with the average earnings surprise being 10.94%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Biotech major Gilead Sciences Inc. (GILD - Free Report) is set to report third-quarter 2022 results on Oct 27, after market close.
The company has a good track record, with earnings beating estimates in three of the last four quarters and missing in one, with the average beat being 5.90%. In the last reported quarter, the company beat expectations by 4.64%.
Factors to Note
Gilead did not provide any guidance for the third quarter.
HIV franchise sales increased 7% in the last reported quarter, driven by higher demand for flagship HIV therapy Biktarvy and favorable pricing dynamics, which more than offset the decline in sales due to the loss of exclusivity of Truvada and Atripla. Biktarvy’s sales increased 28% year over year in the second quarter due to higher demand, and the trend is likely to have continued in the third quarter. Descovy’s revenues increased 6% year over year, driven by higher demand and channel mix. The momentum is likely to have continued in the third quarter.
On the second-quarter earnings call, management stated that Biktarvy remains the leading regimen for new starts and switches in the United States and new starts in Europe.
The Zacks Consensus Estimate for sales of Biktarvy and Descovy is pegged at $2.6 billion and $453 million, respectively. Our estimates for the same are $2.6 billion and $427, respectively.
Hepatitis C virus product sales have been declining for quite some time now, and the second quarter saw an 18% decline due to a lower average realized price and fewer patient starts. The trend is likely to have continued in the third quarter.
Sales of Veklury (remdesivir), an antiviral treatment for COVID-19, plunged 46% in the second quarter and the third quarter is likely to have seen a significant sequential decline as the need for medications fell with a rise in general immunity to this virus. Gilead expects total Veklury sales of approximately $2.5 billion for 2022, of which $2 billion has already been recorded in the first half.
Cell Therapy product sales, which include Yescarta (axicabtagene ciloleucel) and Tecartus (brexucabtagene autoleucel), were up 68% in the previous quarter. Sales are likely to have experienced a sequential increase, driven by label expansions of Yescarta and Tecartus. The Zacks Consensus Estimate for Cell Therapy product sales stands at $365 million and our estimate is $444 million.
Sales of Trodelvy (for breast cancer) surged 79% in the second quarter, reflecting continued uptake in the second-line setting for the treatment of metastatic triple-negative breast cancer (TNBC) in the United States and Europe, as well as metastatic urothelial cancer in the United States. The drug was added following the acquisition of Immunomedics by Gilead in 2020. Sales are likely to have registered a sequential increase on increased demand.
Hepatitis B virus and hepatitis delta virus product sales decreased 1% in the second quarter and the third quarter is likely to have seen a similar trend.
Operating expenses are likely to have increased due to higher investments in the oncology program.
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.
Gilead’s HIV treatment Sunlenca (lenacapavir) has been approved by the European Commission for treating HIV infection, in combination with other antiretroviral(s), in adults with multi-drug resistant HIV infection for whom it is otherwise not possible to construct a suppressive anti-viral regimen.
The FDA also accepted the company’s new drug application resubmission for lenacapavir. The agency has assigned a target action date of Dec 27, 2022. Additional regulatory filings and decisions by regulatory authorities are anticipated later in 2022.
Share Price Performance
Gilead’s stock has lost 4.3% in the year so far compared with the industry's decline of 25.4%.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Gilead in this reporting cycle. 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. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Gilead has an Earnings ESP of -2.74%. This is because the Most Accurate Estimate stands at $1.42 while the Zacks Consensus Estimate stands at $1.46;
Zacks Rank: Gilead 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 these have the right combination of elements to post an earnings beat this season.
Editas Medicine (EDIT - Free Report) has an Earnings ESP of +3.47% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings of EDIT beat estimates in each of the trailing four quarters. It delivered an earnings surprise of 17.82%, on average.
Acadia Pharmaceuticals (ACAD - Free Report) has an Earnings ESP of +6.47% and a Zacks Rank #3.
Acadia topped earnings estimates in two of the last four quarters and has a four-quarter earnings surprise of 6.83%, on average.
Jazz Pharmaceuticals (JAZZ - Free Report) has an Earnings ESP of +2.12% and a Zacks Rank #2.
JAZZ beat earnings estimate in three of the last four quarters, with the average earnings surprise being 10.94%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Free Report: Must-See Energy Stocks for 2023
Record profits at oil companies can mean big gains for you. With soaring demand and elevated prices, oil stocks could be top performers by far in 2023. Zacks has released a special report revealing the 4 oil stocks experts believe will deliver the biggest gains. (You’ll never guess Stock #2!)
Download Oil Market on Fire today, absolutely free.
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