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Gilead (GILD) to Report Q4 Earnings: What's in the Cards?
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Biotech major Gilead Sciences Inc. (GILD - Free Report) is set to report fourth-quarter 2022 results on Feb 2, 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 0.36%. In the last reported quarter, the company beat expectations by 31.94%.
Gilead Sciences, Inc. Price, Consensus and EPS Surprise
Gilead did not provide any guidance for the fourth quarter.
Revenues decreased 5% in the third quarter, primarily due to lower Veklury (remdesivir) sales, partially offset by increased sales in HIV and oncology products and the trend has most likely continued in the fourth 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 22% year over year in the third quarter due to higher demand, and the trend is likely to have continued in the fourth quarter. Descovy’s revenues increased 16% year over year in the third quarter, driven by higher demand and channel mix. The momentum is likely to have continued in the fourth quarter.
The Zacks Consensus Estimate for sales of Biktarvy and Descovy is pegged at $2.8 billion and $478 million, respectively. Our estimates for the same are $2.7 billion and $469, respectively.
Hepatitis C virus product sales saw a turnaround last quarter and sales increased by 22% due to a favorable resolution of a prior year rebate claim in Europe and other favorable pricing dynamics in the United States, partially offset by fewer patient starts. However, sales in the fourth quarter are likely to have declined.
Sales of Veklury (remdesivir), an antiviral treatment for COVID-19, plunged 52% in the third quarter, driven by lower rates of COVID-19 related hospitalizations and the fourth quarter is likely to have seen a significant sequential decline as well. Gilead expects total Veklury sales of approximately $3.4 billion for 2022, of which $2.9 billion has already been recorded in the first nine months.
Cell Therapy product sales, which include Yescarta (axicabtagene ciloleucel) and Tecartus (brexucabtagene autoleucel), were up 79% in the previous quarter. Sales are likely to have experienced a sequential increase, driven by the label expansions of Yescarta and Tecartus. Our estimate for Cell Therapy product sales is $423.7 million.
Sales of Trodelvy (for breast cancer) surged 78% in the third quarter, reflecting continued uptake in both the second- and third-line settings for the treatment of metastatic triple-negative breast cancer. 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 increased 7% in the third quarter and the fourth quarter is likely to have seen a similar trend.
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 franchise recently got a boost with the FDA’s approval of lenacapavir under the brand name Sunlenca, in combination with other antiretroviral(s), for the treatment of HIV-1 infection in heavily treatment-experienced (HTE) adults with multi-drug resistant (MDR) HIV-1 infection. It has also been approved by the European Commission.
The European Medicines Agency (EMA) recently validated a type II variation Marketing Authorization Application (MAA) for Trodelvy (sacituzumab govitecan-hziy) for the treatment of adult patients with unresectable or metastatic hormone receptor (HR)-positive, human epidermal growth factor receptor 2 (HER2)-negative (IHC 0, IHC 1+ or IHC 2+/ISH–) breast cancer patients who have received endocrine-based therapy and at least two additional systemic therapies in the metastatic setting.
Share Price Performance
Gilead’s stock has gained 21.4% in the past year against the industry's decline of 6.9%.
Image Source: Zacks Investment Research
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 -6.99%. This is because the Most Accurate Estimate stands at $1.39 while the Zacks Consensus Estimate stands at $1.49;
Zacks Rank: Gilead currently carries a Zacks Rank #2.
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.
Image: Bigstock
Gilead (GILD) to Report Q4 Earnings: What's in the Cards?
Biotech major Gilead Sciences Inc. (GILD - Free Report) is set to report fourth-quarter 2022 results on Feb 2, 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 0.36%. In the last reported quarter, the company beat expectations by 31.94%.
Gilead Sciences, Inc. Price, Consensus and EPS Surprise
Gilead Sciences, Inc. price-consensus-eps-surprise-chart | Gilead Sciences, Inc. Quote
Factors to Note
Gilead did not provide any guidance for the fourth quarter.
Revenues decreased 5% in the third quarter, primarily due to lower Veklury (remdesivir) sales, partially offset by increased sales in HIV and oncology products and the trend has most likely continued in the fourth 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 22% year over year in the third quarter due to higher demand, and the trend is likely to have continued in the fourth quarter. Descovy’s revenues increased 16% year over year in the third quarter, driven by higher demand and channel mix. The momentum is likely to have continued in the fourth quarter.
The Zacks Consensus Estimate for sales of Biktarvy and Descovy is pegged at $2.8 billion and $478 million, respectively. Our estimates for the same are $2.7 billion and $469, respectively.
Hepatitis C virus product sales saw a turnaround last quarter and sales increased by 22% due to a favorable resolution of a prior year rebate claim in Europe and other favorable pricing dynamics in the United States, partially offset by fewer patient starts. However, sales in the fourth quarter are likely to have declined.
Sales of Veklury (remdesivir), an antiviral treatment for COVID-19, plunged 52% in the third quarter, driven by lower rates of COVID-19 related hospitalizations and the fourth quarter is likely to have seen a significant sequential decline as well. Gilead expects total Veklury sales of approximately $3.4 billion for 2022, of which $2.9 billion has already been recorded in the first nine months.
Cell Therapy product sales, which include Yescarta (axicabtagene ciloleucel) and Tecartus (brexucabtagene autoleucel), were up 79% in the previous quarter. Sales are likely to have experienced a sequential increase, driven by the label expansions of Yescarta and Tecartus. Our estimate for Cell Therapy product sales is $423.7 million.
Sales of Trodelvy (for breast cancer) surged 78% in the third quarter, reflecting continued uptake in both the second- and third-line settings for the treatment of metastatic triple-negative breast cancer. 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 increased 7% in the third quarter and the fourth quarter is likely to have seen a similar trend.
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 franchise recently got a boost with the FDA’s approval of lenacapavir under the brand name Sunlenca, in combination with other antiretroviral(s), for the treatment of HIV-1 infection in heavily treatment-experienced (HTE) adults with multi-drug resistant (MDR) HIV-1 infection. It has also been approved by the European Commission.
The European Medicines Agency (EMA) recently validated a type II variation Marketing Authorization Application (MAA) for Trodelvy (sacituzumab govitecan-hziy) for the treatment of adult patients with unresectable or metastatic hormone receptor (HR)-positive, human epidermal growth factor receptor 2 (HER2)-negative (IHC 0, IHC 1+ or IHC 2+/ISH–) breast cancer patients who have received endocrine-based therapy and at least two additional systemic therapies in the metastatic setting.
Share Price Performance
Gilead’s stock has gained 21.4% in the past year against the industry's decline of 6.9%.
Image Source: Zacks Investment Research
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 -6.99%. This is because the Most Accurate Estimate stands at $1.39 while the Zacks Consensus Estimate stands at $1.49;
Zacks Rank: Gilead currently carries a Zacks Rank #2.
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.
Sanofi (SNY - Free Report) has an Earnings ESP of +2.22% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sanofi beat earnings estimates in each of the trailing four quarters. It delivered an earnings surprise of 9.50%, on average.
Novo Nordisk (NVO - Free Report) has an Earnings ESP of +11.25% and a Zacks Rank #2.
NVO topped earnings estimates in three of the last four quarters and has a four-quarter earnings surprise of 3.09%, on average.
Pfizer (PFE - Free Report) has an Earnings ESP of +0.48% and a Zacks Rank #3.
PFE beat earnings estimate in three of the last four quarters, with the average earnings surprise being 15.86%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.