Gilead Sciences: Time for an Earnings Beat?

Citigroup’s Yaron Werber and team expect Gilead Sciences (GILD) to beat earnings forecasts when the biotech giant’s releases its financial results on July 23:

AP

Gilead Should Beat Driven by Strong Sovaldi Launch— HIV franchise U.S. sales are tracking in-line with Citi and consensus at $1,445M vs. Citi estimates of $1,446M and consensus estimates of $1,443M. We see a bounce back in HIV sales from Q1, when there was some weakness due to inventory drawdown. We model total revs of $6.3B vs. consensus $5.5B. We are increasing our Sovaldi U.S sales to $3B and global Sovaldi estimates to $3.3B vs. consensus $2.6B as we believe that IMS scrip data may not be capturing all the sales and as we account for further inventory stocking due to high demand. Recall that sales from VA system and Federal facilities are not captured in the IMS scrip data. We are increasing our Q2 EPS to $1.94 vs. consensus $1.59.

Werber also thinks Alexion Pharmaceuticals (ALXN), Amgen (AMGN),
Biogen Idec (BIIB), Celgene (CELG) and Regeneron (REGN) will beat earnings.

Gilead Sciences has gained 1% to $87.96 at 12:36 p.m. today, while Alexion Pharmaceuticals has risen 0.4% to $164.93, Amgen has advanced 1.2% to $122.48, Biogen has ticked up 0.3% to $331.90 and Regeneron has jumped 1.3% to $312.49. Celgene is little changed at $90.10.