These Two Major Biotechs Are Bouncing Back With Q3 Results

Health and Healthcare

Published: October 28, 2020 4:25 pm

Amgen Inc. (NASDAQ: AMGN) and Gilead Sciences Inc. (NASDAQ: GILD) released their most recent financial results after the closing bell on Wednesday. While most major biotechs have outperformed the broad markets, these two firms have lagged. However, these positive results could be signalling a bounce for these two biotechs.

24/7 Wall St. has put together some highlights from the most recent quarterly reports from both of these companies, including a recent trading history and consensus target.

Amgen said that it had $4.37 in earnings per share (EPS) and $6.4 billion in revenue, versus consensus estimates that called for $3.80 in EPS and $6.35 billion in revenue. The third quarter from last year had $3.66 in EPS and $5.74 billion in revenue.

Total third quarter revenues increased 12% year over year, driven by higher volume growth, partially offset by lower net selling prices and the effects of the COVID-19 pandemic.

Product sales increased 12% globally, driven by 18% volume growth across a number of Amgen’s newer products, including Otezla, Mvasi, Kanjinti, and Repatha.

For the 2020 full year, Amgen issued guidance calling for EPS in the range of $15.80 to $16.15 and total revenue in the range of $25.1 billion to $25.5 billion. Analysts are calling for $15.77 in EPS and $25.41 billion in revenue for the full year.

Amgen stock closed Wednesday at $216.42, with a 52-week range of $177.05 to $264.97. The consensus analyst price target is $260.79. Following the announcement, the stock was up less than 1% at $218.00 in the after-hours session.

Gilead posted $2.11 in EPS on $6.6 billion in revenue for the third quarter. Analysts were calling for $1.95 in EPS and $6.39 billion in revenue. The third quarter from last year had $1.64 in EPS and $5.6 billion in revenue.

During this quarter, revenues reflect the continued impact from the COVID-19 pandemic on HCV and pre-exposure prophylaxis (PrEP). However, Gilead continued to see signs of recovery in Europe and the United States during the third quarter 2020.

In terms of its product sales, the firm reported:

HIV product revenue increased 8% year over year to $4.55 billion.
HCV product revenue decreased 31% to $464 million.
Cell Therapy product revenue increased 25% to $147 million.
Veklury revenue came in at $873 million.
Other product revenue decreased 11% to $462 million.

Looking ahead to the 2020 full year, the company expects to see EPS in the range of $6.25 to $6.60 and product sales in the range of $23.0 billion to $23.5 billion. Consensus estimates are calling for $6.98 in EPS on $24.17 billion in revenue for the full year.

Gilead stock recently closed at $58.72, with a 52-week range of $58.06 to $85.97. The consensus analyst price target is $78.42. Following the announcement, the stock was up nearly 2% at $59.75 in the after-hours session.

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