Gilead Sciences (GILD) Stock Climbs On Great Earnings

Gilead Sciences Stock NewsGilead Sciences, Inc. (NASDAQ: GILD)

As expected, Gilead Sciences reported it’s quarterly earnings report yesterday after the bell. Also meeting my expectations, the company did far better in the first quarter than most analysts expected it to do. So, today we’ll take a look at the earnings report for the quarter, chat about how the market reacted, and what we can expect to see from Gilead stock moving forward.

Gilead Sciences Earnings Report Was A Hit

As mentioned above, GILD first quarter earnings were a hit. Here’s what we saw

  • Earnings Per Share – Wall Street expected to see earnings per share come in around $2.34. However, GILD absolutely blew this out of the water with posted earnings at $2.94 per share.
  • Top-Line Revenue – Overall, revenue for the quarter came in at $7.1 billion; far exceeding analyst expectations of 6.9 billion.
  • Sovaldi & Harvoni – Sales of the company’s core HCV treatment climbed to ta total of $4.5 billion in the quarter. Analyst only expected to see $3.7 billion generated from the drugs.

Subscribe to The Prudent Speculator
As you can see from above, Gilead Sciences beat all analyst expectations with regard to their earnings report.

GILD Q1 Earnings Put ABBV Concerns To Rest

AbbVie Inc (NYSE: ABBV)

One of the big concerns about this earnings report was the fact that GILD has been in an HCV price war with ABBV. So, many analysts expected this war to drive down pricing and revenue; ultimately leading to a poor report. However, as you can see above, Gilead’s HCV drugs did great in the quarter, and are expected to continue to do so moving forward.

How Gilead Sciences Reacted In The Market

As we’ve come to expect to see anytime a company produces better than expected earnings, Gilead Sciences stock is having a great day in the market today. Currently (11:18), GILD is trading at $104.89 per share after a gain of 4.35% so far today; and the climb seems to be continuing.

What We Can Expect To See Moving Forward

Moving forward, I’m expecting great things from GILD in both the short term and long term outlooks. Short term, the earnings results should excite investors and should push the price up. In the long term, GILD fundamentals are great. They are maintaining control of the HCV and HIV markets and they seem to be on the right track with guidance. All in all, no matter if you’re looking at short or long term, this stock looks like it’s going to grow.

What Do You Think?

Where do you think GILD is headed and why? Let us know in the comments below!

Leave a Comment