On Thursday, Piper Sandler adjusted its outlook on Gilead Sciences (NASDAQ:GILD) shares, increasing the price target to $105 from $95, while reiterating an Overweight rating on the stock. The revision followed Gilead's third-quarter earnings that surpassed expectations on both revenue and non-GAAP earnings per share (EPS).
Gilead's total product revenues reached $7.5 billion, outperforming Piper Sandler and consensus estimates which predicted $7.0 billion. The non-GAAP EPS was reported at $2.02, exceeding both Piper Sandler's and consensus estimates of $1.60 and $1.56, respectively. In response to the robust quarterly performance, Gilead has raised its full-year 2024 guidance across all metrics.
The company's commercial business continues to demonstrate strength, particularly in the HIV sector, which has seen a growth of 9% year-over-year. The positive momentum is further supported by the potential of upcoming growth drivers such as lenacapavir and anito-cel. The latter has received a favorable update in its ASH abstract, prompting Piper Sandler to incorporate anito-cel into their financial model.
The analyst from Piper Sandler highlighted the strong quarterly results and the updated full-year 2024 guidance as key factors in the decision to lift the price target for Gilead Sciences. The firm's Overweight rating remains in place, reflecting a positive outlook on the stock's future performance.
In other recent news, Gilead Sciences Inc . (NASDAQ:GILD) has exceeded Wall Street's third-quarter financial expectations, reporting an adjusted profit of $2.02 per share, surpassing the anticipated $1.55, and revenue of $7.5 billion, outperforming the forecasted $7 billion.
In response to this strong performance, Gilead has raised its full-year earnings outlook. The company's third-quarter success was partly due to a 13% increase in sales of its HIV drug, Biktarvy, which generated $3.5 billion. However, net earnings for the quarter declined to $1.00 per share, down from $1.73 in the previous year, due to a significant impairment charge related to Gilead's 2020 acquisition of Immunomedics (NASDAQ:IMMU).
Gilead has now adjusted its full-year product sales forecast to between $27.8 billion and $28.1 billion, up from the previous estimate of $27.1 billion to $27.5 billion. The company also raised its adjusted profit expectations to a range of $4.25 to $4.45 per share, up from the earlier forecast of $3.60 to $3.90.
Analysts from RBC Capital Markets, including Brian Abrahams, have acknowledged Gilead's effective control of expenditures and expressed surprise at the improved full-year earnings estimate. Finally, Gilead announced plans to seek U.S. regulatory approval for lenacapavir, an HIV prevention injection, by the end of the year. These developments highlight Gilead's recent financial performance and strategic moves.
InvestingPro Insights
Gilead Sciences' strong performance, as highlighted in the article, is further supported by real-time data from InvestingPro. The company's market capitalization stands at an impressive $114.15 billion, reflecting its significant presence in the biotechnology sector. Gilead's revenue for the last twelve months as of Q3 2024 reached $28.3 billion, with a notable revenue growth of 7.02% in Q3 2024 compared to the previous quarter. This aligns with the article's mention of the company's robust commercial business, particularly in the HIV sector.
InvestingPro Tips reveal that Gilead has raised its dividend for 9 consecutive years, demonstrating a commitment to shareholder returns. This is complemented by a current dividend yield of 3.36%, which may attract income-focused investors. The stock's strong performance is evident in its 25.06% price total return over the past three months and 43.11% over the past six months, corroborating the positive outlook expressed by Piper Sandler.
It's worth noting that Gilead is trading near its 52-week high, with the current price at 99.68% of its peak. This aligns with the article's mention of the increased price target and reaffirmed Overweight rating. For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips for Gilead Sciences, providing a deeper understanding of the company's financial health and market position.
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