Health and Healthcare

How Analysts Value Gilead Now After Earnings

Chris Lange

Published: February 6, 2016 10:50 am

Last Updated: January 13, 2020 1:32 pm

Gilead Sciences Inc. (NASDAQ: GILD) reported fourth-quarter financial results on Tuesday. As a result, analysts weighed in on this biotech giant and in what direction it might go next.

The company had $3.32 in earnings per share (EPS) on $8.51 billion in revenue, versus Thomson Reuters consensus estimates that called for $3.00 in EPS on revenue of $8.13 billion. The same period from the previous year had EPS of $2.43 on $7.31 billion in revenue.

In the fourth quarter of 2015, product sales in the United States were $4.8 billion, compared to $5.5 billion in the fourth quarter of 2014. In Europe, product sales were $1.7 billion, compared to $1.4 billion a year ago. Sales in other international locations increased to $1.9 billion, compared to $373 million.

Harvoni sales totaled $3.35 billion in the fourth quarter, compared to $2.11 billion last year. Sovaldi sales totaled $1.55 billion this year, which came down from $1.73 billion.

As for full-year 2016 guidance, Gilead expects to have net product sales in the range of $30 billion to $31 billion, compared to the consensus estimate of $31.68 billion in revenue.

• Barclays kept its Overweight rating but lowered its price target to $115 from $130.
• Merrill Lynch has a Neutral rating and lowered its price target from $107 to $104.
• Goldman Sachs kept a Neutral rating but lowered its price target to $91 from $100.
• JPMorgan maintained its Overweight rating but lowered its target price to $122 from $133.
• Morgan Stanley kept an Equal Weight rating but lowered its price target from $120 to $111.
• RBC Capital Markets kept an Outperform rating but lowered its price target to $120 from $130.

Shares of Gilead closed Friday at $85.14, with a consensus analyst price target of $118.28 and a 52-week trading range of $81.89 to $123.37.