Earnings Preview : Gilead Sciences Inc. (NASDAQ: GILD) Third Quarter 2010
Thursday, October 07, 2010 5:52 PM

Gilead Sciences Inc. (NASDAQ: GILD) is scheduled to release fiscal third-quarter earnings after the closing bell on Tuesday, October 19, 2010. Analysts, on average, expect the company to report earnings of 87 cents per share on revenue of $1.93 billion. In the year-ago quarter, the company reported earnings of 78 cents per share on revenue of $1.80 billion.

Gilead Sciences, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of therapeutics for the treatment of life threatening diseases worldwide. The company virtually dominates the HIV/AIDS drugs market.

In the preceding second-quarter, the Foster City, California-based company's net income was $712.1 million or 79 cents per share, compared to $571.4 million, or 61 cents per share, in year-ago quarter. On an adjusted basis, the company earned 85 cents per share in the second quarter. Revenue increased 17% to $1.93 billion from $1.65 billion. Analysts, on average, expected the company to report earnings of 87 cents per share on revenue of $1.96 billion. Gross margin rose to 51.5% of sales from 46.2%.

At its last earnings call, Gilead Sciences reduced its product sales guidance to $7.3 billion to $7.4 billion, citing the impact of foreign currency fluctuations.

Gilead Sciences recently announced Phase II clinical trial results showing that its investigational fixed-dose, single-tablet "Quad" regimen of elvitegravir, cobicistat and Truvada for the treatment of HIV infection maintained a high rate of virologic suppression through 48 weeks, exhibiting antiretroviral activity comparable to that of Atripla.

Early in September, the company announced that it has submitted a Marketing Authorization Application or MAA to the European Medicines Agency or EMA for marketing approval for the fixed-dose combination of Truvada or, emtricitabine and tenofovir disoproxil, and Tibotec Pharmaceuticals' investigational non-nucleoside reverse transcriptase inhibitor TMC278, or rilpivirine for the treatment of HIV-1 infection in adults. Pending approval, the new single-tablet regimen would be only the second product that contains a complete antiretroviral treatment regimen in a single once-daily tablet.

Among other developments, the company announced late July that it will buy back at least $1 billion of its common stock, and fund the purchase by issuing $2.2 billion in convertible senior notes. Remaining proceeds of the note offering will be used for general corporate purposes.

In terms of stock performance, Gilead shares have lost nearly 17% since the beginning of the year.

Disclosure: Author doesn't own any of the stocks discussed here.



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