Zacks Research Lowers Earnings Estimates for Gilead Sciences

Key Points

• Zacks Research has lowered its FY2025 earnings per share (EPS) estimate for Gilead Sciences from $7.98 to $7.76, while the current consensus estimate stands at $7.95 EPS.
• Gilead Sciences recently reported Q2 earnings of $2.01 EPS, surpassing analysts' expectations of $1.96, with quarterly revenue reaching $7.08 billion, slightly exceeding projected figures.
• The company has announced a quarterly dividend of $0.79 per share, representing an annualized yield of 2.8% and a payout ratio of approximately 62.95%.

Gilead Sciences, Inc. (NASDAQ:GILD - Free Report) - Equities researchers at Zacks Research cut their FY2025 EPS estimates for Gilead Sciences in a report released on Tuesday, September 23rd. Zacks Research analyst Team now anticipates that the biopharmaceutical company will post earnings of $7.76 per share for the year, down from their prior estimate of $7.98. The consensus estimate for Gilead Sciences' current full-year earnings is $7.95 per share. Zacks Research also issued estimates for Gilead Sciences' Q4 2025 earnings at $1.82 EPS.

Gilead Sciences (NASDAQ:GILD - Get Free Report) last posted its earnings results on Thursday, August 7th. The biopharmaceutical company reported $2.01 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.96 by $0.05. Gilead Sciences had a net margin of 21.86% and a return on equity of 50.99%. The company had revenue of $7.08 billion during the quarter, compared to analysts' expectations of $6.95 billion. During the same quarter in the previous year, the company posted $2.01 earnings per share. Gilead Sciences's quarterly revenue was up 1.4% compared to the same quarter last year. Gilead Sciences has set its FY 2025 guidance at 7.950-8.250 EPS.

A number of other research analysts have also recently issued reports on the stock. JPMorgan Chase & Co. lifted their target price on shares of Gilead Sciences from $135.00 to $145.00 and gave the company an "overweight" rating in a research note on Tuesday, September 16th. Royal Bank Of Canada raised their price target on shares of Gilead Sciences from $96.00 to $98.00 and gave the company a "sector perform" rating in a report on Friday, August 8th. Rothschild & Co Redburn raised their price target on shares of Gilead Sciences from $136.00 to $143.00 and gave the company a "buy" rating in a report on Friday, September 12th. Daiwa Capital Markets raised shares of Gilead Sciences from a "neutral" rating to an "outperform" rating and set a $128.00 price target for the company in a report on Tuesday, August 19th. Finally, Dbs Bank raised shares of Gilead Sciences to a "moderate buy" rating in a report on Friday, September 5th. Three analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $117.17.

Gilead Sciences Stock Performance

NASDAQ:GILD opened at $113.67 on Thursday. Gilead Sciences has a 1 year low of $81.83 and a 1 year high of $121.83. The firm has a 50 day moving average of $114.29 and a 200-day moving average of $110.01. The company has a current ratio of 1.32, a quick ratio of 1.15 and a debt-to-equity ratio of 1.13. The stock has a market capitalization of $141.04 billion, a P/E ratio of 22.64, a price-to-earnings-growth ratio of 0.78 and a beta of 0.36.

Gilead Sciences Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 29th. Shareholders of record on Monday, September 15th will be issued a dividend of $0.79 per share. This represents a $3.16 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend is Monday, September 15th. Gilead Sciences's payout ratio is currently 62.95%.

Insiders Place Their Bets

In other news, CFO Andrew D. Dickinson sold 2,500 shares of Gilead Sciences stock in a transaction on Monday, September 15th. The shares were sold at an average price of $113.57, for a total transaction of $283,925.00. Following the transaction, the chief financial officer directly owned 159,555 shares of the company's stock, valued at $18,120,661.35. This trade represents a 1.54% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Daniel Patrick O'day sold 10,000 shares of Gilead Sciences stock in a transaction on Thursday, August 28th. The stock was sold at an average price of $113.63, for a total transaction of $1,136,300.00. Following the transaction, the chief executive officer directly owned 595,725 shares in the company, valued at approximately $67,692,231.75. This represents a 1.65% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 82,000 shares of company stock valued at $9,390,030. Company insiders own 0.27% of the company's stock.

Hedge Funds Weigh In On Gilead Sciences

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Norges Bank bought a new stake in Gilead Sciences in the 2nd quarter valued at $2,150,268,000. Price T Rowe Associates Inc. MD lifted its position in Gilead Sciences by 314.6% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 14,703,103 shares of the biopharmaceutical company's stock valued at $1,647,484,000 after acquiring an additional 11,156,382 shares in the last quarter. Nuveen LLC bought a new stake in Gilead Sciences in the 1st quarter valued at $620,415,000. Ameriprise Financial Inc. lifted its position in Gilead Sciences by 397.6% in the 2nd quarter. Ameriprise Financial Inc. now owns 6,748,403 shares of the biopharmaceutical company's stock valued at $748,147,000 after acquiring an additional 5,392,191 shares in the last quarter. Finally, Invesco Ltd. lifted its position in Gilead Sciences by 33.5% in the 2nd quarter. Invesco Ltd. now owns 13,521,228 shares of the biopharmaceutical company's stock valued at $1,499,098,000 after acquiring an additional 3,394,330 shares in the last quarter. 83.67% of the stock is owned by institutional investors.

About Gilead Sciences

Gilead Sciences, Inc, a biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally. The company provides Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/ Eviplera, Stribild, Sunlencs, and Atripla products for the treatment of HIV/AIDS; Veklury, an injection for intravenous use, for the treatment of COVID-19; and Epclusa, Harvoni, Vemlidy, and Viread for the treatment of viral hepatitis.

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