From Nasdaq: 2025-02-17 13:36:00

Gilead Sciences, Inc. reported better-than-expected fourth-quarter results with adjusted EPS of $1.90, beating estimates of $1.67. Total revenues of $7.6 billion exceeded expectations and increased 6% year over year. The company’s strong guidance, with projected product sales of $28.2-$28.6 billion and adjusted EPS of $7.70-$8.10, impressed investors.

Gilead’s leading HIV franchise continues to drive growth, with its flagship therapy Biktarvy maintaining over 50% market share in the United States. The pipeline candidate lenacapavir showed promising results for HIV prevention in cisgender women. The company submitted applications for lenacapavir approval, showcasing its commitment to innovation in HIV treatments.

Recent drug approvals, including seladelpar for primary biliary cholangitis, strengthen Gilead’s portfolio. Strategic partnerships with LEO Pharma and other companies enhance its inflammation research and therapy development capabilities. The company’s focus on expanding its drug portfolio through acquisitions and collaborations underscores its commitment to growth and innovation.

Despite setbacks in expanding Trodelvy’s label, Gilead’s breast cancer drug has shown promise, receiving Breakthrough Therapy Designation for small cell lung cancer. Challenges in the Cell Therapy franchise are noted, but Gilead’s diversified oncology portfolio and ongoing studies indicate a resilient business strategy amid competitive pressures.

Gilead’s stock performance has outpaced the industry and sector, with shares gaining 51.3% in the past year. The company’s low price/earnings ratio and positive estimate revisions for 2025 and 2026 signal growth potential. Strategic collaborations and acquisitions, like the one with Merck for HIV treatments, further position Gilead for long-term success.

Investors interested in Gilead should consider the company’s strong fundamentals, recent positive estimate revisions, and consistent dividend payouts. Gilead’s cash position supports sustainable dividends, with a recent increase of 2.6% per share. The company’s Zacks Rank #2 (Buy) reflects its growth prospects and commitment to innovation in the healthcare sector.



Read more at Nasdaq: Gilead Stock Rises 8% Post Q4 Earnings: Should You Buy or Sell?