Gilead Sciences posted fourth quarter and full year results yesterday that surpassed analysts’ expectations, largely driven by sales of its COVID-19 treatment, Remdesivir, which is sold under the brand name Veklury.
Gilead (GILD) reported revenues excluding Remdisivir of $5.4 billion for Q4 and $21.5 billion for full year 2020. This represents a year-on-year drop of 7% and 3%, respectively.
However, revenues including Remdesivir tell a different story. $1.9 billion worth of Remdesivir was sold in the fourth quarter alone. Total revenues for the fourth quarter came in at around $7.4 billion, beating analysts’ forecasts of $7.03 billion.
This led to an increase in revenue in the fourth quarter by 26% year-on year and 10% for full year 2020.
Daniel O’Day, Chairman and Chief Executive Officer of Gilead, said, “Gilead continues to play a central role in the pandemic, with Veklury now treating one in two hospitalized patients in the United States. At the same time, we continue to meet the needs of people living with HIV, cancer, viral hepatitis and other conditions.”
Meanwhile, fourth quarter EPS grew 99% year-on-year to $2.19, beating analysts’ estimates of $2.01, with full year EPS growing 16% to $7.09 compared to 2019. (See Gilead stock analysis on TipRanks)
Oppenheimer analyst Hartaj Singh reiterated his Buy rating on Gilead yesterday, setting his price target at $100. This implies upside potential of around 52% from current levels.
Singh expects Gilead to post EPS of $0.29 for the first quarter of 2021. Meanwhile, the company projected full year 2021 earnings of $7.10 per share, which is higher than the $6.85 previously expected by the Street, according to Refinitiv.
Consensus among analysts is a Moderate Buy based on 9 Buys and 8 Holds. The average analyst price target of $76.58 suggests upside potential of around 16% over the next 12 months.
Based on 8 unique factors, Gilead scores a “Perfect 10” Smart Score, which implies that the stock is expected to outperform the market moving forward.