Group 1 - Gilead Sciences (GILD) has gained approximately 16.5% year-to-date, outperforming the average gain of 5.6% in the Medical sector [4] - Gilead Sciences holds a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - The Zacks Consensus Estimate for GILD's full-year earnings has increased by 7.7% over the past quarter, reflecting improved analyst sentiment [3] Group 2 - Gilead Sciences is part of the Medical - Biomedical and Genetics industry, which includes 510 stocks and is currently ranked 67 in the Zacks Industry Rank [5] - Stocks in the Medical - Biomedical and Genetics industry have gained about 5.8% year-to-date, indicating GILD's strong performance relative to its peers [5] - Another outperforming stock in the Medical sector is Natera (NTRA), which has increased by 9% year-to-date and also holds a Zacks Rank of 2 (Buy) [4][5]

Core Viewpoint - Gilead Sciences, Inc. reported strong fourth-quarter results, exceeding expectations in both earnings and revenue, driven by robust product sales, particularly in HIV, oncology, and liver disease treatments [1][2]. Financial Performance - Adjusted earnings per share (EPS) for the fourth quarter were $1.90, surpassing the Zacks Consensus Estimate of $1.67 and up from $1.72 in the same quarter last year [1]. - Total revenues reached $7.6 billion, exceeding the Zacks Consensus Estimate of $7.1 billion, marking a 6% year-over-year increase [2]. Product Sales and Guidance - The increase in revenues was primarily attributed to higher sales in HIV, oncology, and liver disease drugs [2]. - Gilead's guidance for product sales is projected between $28.2 billion and $28.6 billion, with adjusted EPS anticipated in the range of $7.70-$8.10 [2]. Market Position and Growth Drivers - Gilead holds a market-leading position in HIV treatments, with over 50% market share in the U.S. for its flagship therapy, Biktarvy [4]. - The company’s HIV franchise has shown consistent growth over the past three years, contributing significantly to revenue [4]. Innovation and Pipeline - Gilead's pipeline includes lenacapavir, which has shown 100% efficacy for HIV prevention in cisgender women, and is under review for approval by the FDA and EMA [5][6]. - The approval of seladelpar for primary biliary cholangitis (PBC) strengthens Gilead's liver disease portfolio, following its acquisition of CymaBay Therapeutics for $4.3 billion [7][8]. Strategic Partnerships - Gilead has formed strategic partnerships, including one with LEO Pharma to enhance its inflammation research portfolio [10]. - Collaborations with Merck to evaluate investigational combinations for HIV treatment are ongoing, showing promising results [20]. Stock Performance and Valuation - Gilead's shares have increased by 51.3% over the past year, outperforming the industry and the S&P 500 [16]. - The current price/earnings ratio is 13.27x forward earnings, lower than the large-cap pharma industry's average of 16.39x [16]. Dividend and Financial Health - The company announced a 2.6% increase in its quarterly cash dividend, effective in Q1 2025, resulting in a quarterly dividend of 79 cents per share [21]. - Gilead's strong cash position, with $10 billion in cash and equivalents as of December 31, 2024, supports its current yield of 2.96% [22].

Company Performance - Gilead Sciences (GILD) shares have increased by 13.3% over the past month, reaching a new 52-week high of $106.69 [1] - Year-to-date, Gilead has gained 12.7%, outperforming the Zacks Medical sector's 4.4% and the Zacks Medical - Biomedical and Genetics industry's 12.6% [1] Earnings and Revenue Expectations - Gilead has consistently exceeded earnings consensus estimates, reporting EPS of $1.9 against a consensus of $1.67 in its last earnings report [2] - For the current fiscal year, Gilead is projected to achieve earnings of $7.80 per share on revenues of $28.41 billion, reflecting a 68.83% increase in EPS but a slight revenue decline of -1.18% [3] - The next fiscal year forecasts earnings of $8.12 per share on $29.58 billion in revenues, indicating year-over-year changes of 4.14% in EPS and 4.11% in revenues [3] Valuation Metrics - Gilead's current valuation metrics show a trading multiple of 13.3X current fiscal year EPS estimates, below the peer industry average of 22.6X [7] - The stock trades at 12X trailing cash flow compared to the peer group's average of 16X, with a PEG ratio of 0.89 [7] Zacks Rank and Style Scores - Gilead holds a Zacks Rank of 2 (Buy) due to favorable earnings estimate revisions from analysts, indicating potential for further gains [8] - The company has a Value Score of A, Growth Score of B, and Momentum Score of D, resulting in a combined VGM Score of A [6] Industry Comparison - Gilead's performance is strong relative to its industry, with ANI Pharmaceuticals, Inc. (ANIP) also showing positive metrics, including a Zacks Rank of 2 (Buy) and a Value Score of A [9] - The Medical - Biomedical and Genetics industry is positioned in the top 28% of all industries, suggesting favorable conditions for both Gilead and ANIP [11]

Company Overview - Gilead Sciences is a pioneer in developing drugs for the treatment of human immunodeficiency virus (HIV) and has a broad portfolio that includes drugs for liver diseases, hematology/oncology diseases, and inflammation/respiratory diseases [12] - The company's flagship treatment, Biktarvy, is driving growth within its strong HIV franchise, which generated total sales of $18.2 billion in 2023, reflecting a 6% year-over-year increase [12] Investment Potential - Gilead Sciences holds a Zacks Rank of 3 (Hold) and has a VGM Score of A, indicating solid performance metrics [13] - The company has a Momentum Style Score of A, with shares appreciating by 11.8% over the past four weeks [13] - Six analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.09 to $7.64 per share, and Gilead boasts an average earnings surprise of 19.5% [13] Conclusion - With a strong Zacks Rank and top-tier Momentum and VGM Style Scores, Gilead Sciences is positioned as a noteworthy option for investors [14]

Core Insights - Gilead Sciences reported fourth-quarter 2024 adjusted EPS of $1.90, exceeding the consensus estimate of $1.70, with sales rising 6% year-over-year to $7.57 billion, surpassing the consensus of $7.14 billion [1][2] Sales Performance - HIV sales increased by 16% to $5.45 billion, driven by demand, higher realized prices, and favorable inventory dynamics [1] - Biktarvy sales rose from $3.12 billion to $3.8 billion, while liver disease sales increased by 4% to $719 million, supported by a strong Livdelzi launch and increased HBV/HDV demand [2] Dividend and Guidance - Gilead increased its quarterly cash dividend by 2.6% to $0.79 per share [2] - The company expects 2025 adjusted EPS to be between $7.70 and $8.10, compared to the consensus of $7.58, and sales to range from $28.2 billion to $28.6 billion, against a consensus of $28.42 billion [3] Future Prospects - Gilead plans to launch lenacapavir for HIV PrEP in Summer 2025, which is expected to enhance its position in the PrEP market and improve patient adherence [4][5] - Analysts from Piper Sandler and Goldman Sachs express optimism regarding Gilead's upcoming lenacapavir launch and its potential impact on revenue [4][5] Analyst Sentiment - Needham maintains a Hold rating on Gilead, citing balanced risk/reward at current levels, but is growing more optimistic due to strong HIV business performance and improving profit margins [6][7] - Gilead's stock rose by 7.73% to $103.57 following the earnings report [7]

Financial Performance - Gilead reported fourth-quarter revenue of $7.6 billion, reflecting a 6% year-over-year increase [2] - The company posted earnings per share (EPS) of $1.42 based on GAAP, marking a year-over-year increase of approximately 25% [2] - Non-GAAP (adjusted) EPS rose roughly 10.5% year over year to $1.90, exceeding the consensus Wall Street estimate of $1.70 per share [2] Future Outlook - Gilead provided optimistic full-year 2025 guidance, projecting non-GAAP diluted EPS between $7.70 and $8.10, compared to $4.62 for full-year 2024 [3] - The company faced challenges in the previous year due to the acquisition of CymaBay and higher income tax expenses impacting earnings [3] Product Development - Gilead is advancing a twice-yearly version of Sunlenca (lenacapavir) and has completed regulatory filings in the U.S. and Europe for the HIV drug [4] - Lenacapavir was recognized as "Breakthrough of the Year" for 2024 by Science magazine [4] Investment Considerations - Gilead's stock may not appeal to growth investors due to expected slight revenue decline, despite anticipated earnings growth [5] - The company announced a dividend increase of 2.6%, resulting in a forward dividend yield of nearly 3% [5] - Gilead's shares are trading at an attractive valuation of 12.8 times forward earnings, which may appeal to income and value investors [5]

Core Insights - Zacks Premium provides various tools to enhance stock market investment confidence and knowledge [1] - The Zacks Style Scores are designed to rate stocks based on value, growth, and momentum characteristics, aiding investors in selecting securities with high potential for market outperformance [3][4][5][6][7] Zacks Style Scores - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [4][5][6][7] - Value Score identifies undervalued stocks using ratios like P/E and Price/Sales [4] - Growth Score emphasizes a company's financial health and future growth potential [5] - Momentum Score tracks price trends to identify favorable investment opportunities [6] - VGM Score combines all three styles to highlight stocks with attractive value, growth, and momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building [8] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [9] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [11] Company Spotlight: Gilead Sciences - Gilead Sciences specializes in developing treatments for HIV and other diseases, with total sales from its HIV franchise reaching $18.2 billion in 2023, reflecting a 6% year-over-year growth [13] - Gilead holds a Zacks Rank of 3 (Hold) and has a VGM Score of A, indicating solid performance potential [14] - The company has a Value Style Score of B, supported by a forward P/E ratio of 12.67, making it attractive for value investors [14] - Recent upward revisions in earnings estimates suggest positive momentum, with the Zacks Consensus Estimate for fiscal 2025 increasing by $0.04 to $7.59 per share [14] - Gilead's strong Zacks Rank and favorable Style Scores position it as a noteworthy investment opportunity [15]

Core Insights - Gilead Sciences, Inc. reported better-than-expected fourth-quarter results with adjusted EPS of $1.90, surpassing the Zacks Consensus Estimate of $1.67 and showing an increase from $1.72 in the same quarter last year [1][2] - Total revenues reached $7.6 billion, exceeding the Zacks Consensus Estimate of $7.1 billion and reflecting a 6% year-over-year increase driven by higher sales in HIV, oncology, and liver disease drugs [2][4] - The company provided an optimistic guidance for 2025, projecting product sales between $28.2 billion and $28.6 billion and adjusted EPS in the range of $7.70-$8.10 [15] Financial Performance - Total product sales rose 7% year-over-year to $7.5 billion, with HIV product sales growing 16% to $5.5 billion, driven by increased demand and favorable pricing [4][5] - Biktarvy, the flagship HIV therapy, saw sales increase by 21% year-over-year to $3.8 billion, capturing over 50% of the U.S. treatment market [5] - Descovy sales also increased by 21% year-over-year to $616 million, maintaining over 40% U.S. market share in pre-exposure prophylaxis [6] Cost Analysis - Adjusted product gross margin improved to 86.7% from 86.1% in the previous year, attributed to product mix [12] - Research and development expenses rose to $1.6 billion from $1.5 billion due to increased investments and clinical activities [12] - SG&A expenses increased by 16% to $1.9 billion, driven by litigation accrual and higher sales and marketing spending [13] 2024 Results - Revenues for 2024 increased by 6% to $28.8 billion, surpassing the Zacks Consensus Estimate of $28.2 billion [14] - EPS for 2024 was reported at $4.62, down 31% from $6.72 in 2023 due to higher acquired IPR&D expenses and increased income tax expenses [14] 2025 Guidance - Gilead expects total product sales, excluding Veklury, to be between $26.8 billion and $27.2 billion, with total Veklury sales estimated at $1.4 billion [15] - The Zacks Consensus Estimate for total product sales is pegged at $28.3 billion [15] Pipeline Updates - The FDA granted Breakthrough Therapy Designation to Trodelvy for treating extensive-stage small cell lung cancer [16] - Gilead submitted applications for lenacapavir for HIV prevention, which could enhance its HIV franchise [17] Dividend Announcement - Gilead announced a 2.6% increase in its quarterly cash dividend, resulting in a quarterly dividend of $0.79 per share starting in the first quarter of 2025 [18] Market Performance - Gilead's shares surged 34.8% over the past year, contrasting with an 11.7% decline in the industry [3]

Group 1 - Gilead Sciences Inc reported a strong fourth-quarter earnings beat with earnings per share (EPS) of $1.90, exceeding analyst estimates by 11.7%, and revenue of $7.57 billion, a 6.4% year-over-year increase [1] - The company provided solid fiscal 2025 guidance, forecasting revenue of $28.4 billion and adjusted EPS of $7.90, slightly above analyst projections [1] - Gilead increased its quarterly dividend to 79 cents per share [1] Group 2 - Following the earnings report, eight brokerages raised their price targets for Gilead, with Morgan Stanley setting the highest target at $124, up from $113 [2] - Despite strong fundamentals, 12 out of 29 analysts still rate Gilead stock as a "hold," with a consensus 12-month price target of $102.86, indicating a slim discount to current levels [2] - The stock has shown momentum, potentially challenging its nearly nine-year high of $101.51 reached on February 5, having gained 42.1% over the last nine months since a low of $62.07 on May 31 [3] Group 3 - Gilead's stock has a Schaeffer's Volatility Scorecard (SVS) ranking of 84 out of 100, indicating that it has tended to exceed options traders' volatility expectations over the past 12 months [3]

Group 1 - Brendan completed a Ph.D. at Stanford University in organic synthesis in 2009 [1] - He worked for Merck from 2009 to 2013 and has experience in biotech startups such as Theravance and Aspira [1] - Brendan is a co-founder of 1200 Pharma, which received significant investment in the eight figures as it spun out of Caltech [1] Group 2 - The article expresses the author's own opinions and indicates a beneficial long position in GILD shares [2] - There is no compensation received for the article other than from Seeking Alpha, and there is no business relationship with any mentioned company [2] Group 3 - The article does not provide any investment recommendations or advice, emphasizing that past performance does not guarantee future results [4]