Gilead Sciences is expected to report Q3 earnings today after the close with a conference call to follow at 4:30 pm ET the same day.
Capital IQ Consensus calls for EPS of $2.84 & a revenue decline of 12.5% to $7.44 bln, compared to EPS of $3.22 on revenue of $8.51 bln in the same quarter last year.
FY16 guidance
- Co updated guidance for FY16 in their Q2 earnings release.
- Lowered net product sales to between $29.5-30.5 bln from $30-31 bln; reaffirmed adj gross margin between 88-90%.
Techs:
GILD has been in a slump throughout 2016 as it sits down -26% YTD near the $73-area. The path of least resistance remains to the downside as price flirts with 2-1/2 year lows & its down-trending 50-day simple moving avg near $77.
Options Activity
Based on GILD options, the current implied volatility stands at ~ 33%, which is 67% higher than historical volatility (over the past 30 days). Based on the GILD Weekly Nov04 $74 straddle, the options market is currently pricing in a move of ~5% in either direction by weekly expiration (Friday).
Peers include: AMGN, RHHBY, NVS, CELG, SHPG, REGN, BMRN, ALXN, BIIB
RESULTS:
Gilead Sciences misses by $0.09, reports revs in-line; reaffirms FY16 (Dec) revs in-line
- Reports Q3 (Sep) earnings of $2.75 per share, $0.09 worse than the Capital IQ Consensus of $2.84.
- Antiviral product sales, which include primarily products in Gilead's HIV and liver disease areas, were $6.8 billion for the third quarter of 2016 compared to $7.7 billion for the same period in 2015.
- HIV and other antiviral product sales were $3.5 billion compared to $2.9 billion for the same period in 2015.
- HCV product sales, which consist of Harvoni (ledipasvir 90 mg/sofosbuvir 400 mg), Sovaldi (sofosbuvir 400 mg) and Epclusa (sofosbuvir 400 mg/velpatasvir 100 mg), were $3.3 billion compared to $4.8 billion for the same period in 2015.
- Other product sales, which include Letairis (ambrisentan), Ranexa (ranolazine) and AmBisome (amphotericin B liposome for injection), were $564 million for the third quarter of 2016 compared to $509 million for the same period in 2015.
- Antiviral product sales, which include primarily products in Gilead's HIV and liver disease areas, were $6.8 billion for the third quarter of 2016 compared to $7.7 billion for the same period in 2015.
- Co reaffirms guidance for FY16 (Dec), sees FY16 (Dec) revs of 29.5-30.5 vs. $30.38 bln Capital IQ Consensus Estimate.
GILD notes they have seen 'strong adoption' of TAF-based regimens where they received reimbursement
- In the US, of the nearly 840k people on antiretroviral therapy, 80% receive a Gilead regiment
Anticipated Milestones:
- Achieve 48-week endpoint in Phase 3 studies in treatment-naïve and switch patients
- Complete Phase 1 study in HIV cure.
- Complete enrollment of Phase 2 study in HCM
- Complete Phase 3 study in LQT-3 syndrome
- Complete Phase 2 study in HCM
- Complete Phase 2 study in ebola virus disease