Earnings preview: What to look for when Gilead reports Q2 results

Gilead Sciences Inc. (NYSE: GILD) is scheduled to report second quarter 2019 earnings results on Tuesday, July 30, after market close. Analysts have forecast earnings of $1.72 per share on revenue of $5.51 billion.

Gilead’s top line results are expected to benefit from strength in the HIV product segment with momentum from Biktarvy in particular. HCV product sales are likely to see weakness, continuing the same trend as last quarter. Products like Odefsey, Vemlidy and Yescarta are likely to continue their growth trends in the second quarter.

Another area to watch is the company’s updates on its pipeline. Gilead is working on expanding the use of Descovy and Biktarvy in the treatment of HIV. The company also intends to file a new drug application for the approval of filgotinib in the treatment of rheumatoid arthritis. Gilead has entered into research partnerships with various companies for several products and updates on these alliances are also worth watching.

In the first quarter of 2019, Gilead topped market estimates. Revenues grew nearly 4% year-over-year to $5.3 billion while adjusted EPS rose 19% to $1.76. Sales in HIV Products grew 14% while sales in HCV Products dropped 24%. Sales of Other Products also fell 7%.

For fiscal year 2019, the company estimates its product sales to come in the range of $21.3 billion to $21.8 billion and adjusted product gross margin to come in the range of 85% to 87%.

Shares of Gilead have gained 9% so far this year and more than 3% over the past three months. The stock was up 0.91% during morning trade on Monday.

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