GILD - Gilead Sciences: Realizing Financial Projections Is Key

2024-03-20 13:10:49 ET

Summary

• Gilead Sciences has seen weak price momentum over the past year following the sales drop in its COVID-19 medication Veklury, even as sales-ex Veklury look alright and earnings have grown.
• The company has a relatively positive revenue and earnings guidance for 2024, which results in attractive market multiples compared to the healthcare sector. Its +4% dividend yield looks good too.
• However, whether the projections are realised remains to be seen. Its Q4 2023 performance was disappointing and the stock could continue to move sideways if the company underperforms on guidance.

Biopharmaceutical company Gilead Sciences ( GILD ) has had an underwhelming past year in terms of the stock, with a 7.6% decline in price. This isn’t unexpected. The company has reported marginal revenue contraction for the past two years, a starkly different trend compared to the compounded annual growth rate [CAGR] of 9.2% over the past decade. Even though the operating income margin improved a bit in 2023 to 28% (2022: 27%), it’s still much lower than the 36% level seen in 2021....

For further details see: