Gilead Sciences (GILD) Soars 4.93% on Strong Q4 Earnings ReportsGilead Sciences (NASDAQ: NASDAQ:GILD ) is making waves in the biotech sector after delivering a stellar fourth-quarter earnings report that not only crushed Wall Street expectations but also set the stage for a promising 2025. The stock surged 4.50% in premarket trading on Wednesday, signaling strong investor confidence in the company’s growth trajectory.
Quarter and Optimistic Guidance
Gilead’s Q4 earnings report was nothing short of impressive. The company posted adjusted earnings of $1.90 per share, a 10.5% year-over-year increase, and handily beat analysts’ estimates of $1.74. Revenue climbed 6% to $7.57 billion, surpassing the consensus forecast of $7.15 billion.
HIV Franchise Shines Bright
Gilead’s HIV portfolio remains its crown jewel. Biktarvy, the company’s flagship HIV treatment, generated $3.8 billion in sales, up 21% year-over-year and well ahead of the $3.47 billion forecast. Descovy, another HIV drug, also outperformed expectations, with sales rising 21% to $616 million. Combined, Gilead’s HIV product sales reached $5.45 billion, up 16% from the previous year.
Looking ahead, Gilead is poised to expand its HIV franchise further with the anticipated mid-2025 launch of lenacapavir, a twice-yearly injectable for HIV prevention. The U.S. Food and Drug Administration (FDA) is expected to make a decision on the drug by mid-2024, and its approval could be a significant growth catalyst.
Oncology and Liver Disease: Steady Growth
Gilead’s oncology and liver disease segments also contributed to the strong quarter. Sales of its cell therapies for cancer treatment rose 5% to $488 million, beating expectations of $476 million. Trodelvy, a cancer drug, saw sales jump 19% to $355 million, surpassing the $324 million forecast. Liver disease treatments brought in $719 million, up 4% year-over-year.
Veklury: The Only Blemish
The only downside in Gilead’s report was Veklury, its COVID-19 treatment. Sales plummeted 53% to $337 million due to lower hospitalizations, particularly in the U.S.
Upbeat 2025 Guidance
Gilead’s bullish outlook for 2025 further fueled investor optimism. The company expects adjusted earnings of $7.70 to $8.10 per share on product sales of $28.2 billion to $28.6 billion. The midpoint of this guidance exceeds analysts’ estimates of $7.61 per share and $28.35 billion in revenue.
Technical Analysis
From a technical perspective, Gilead’s stock is showing strong bullish signals. As of Wednesday’s premarket trading, GILD is up 4.93%, poised to form a gap-up pattern upon market open.
Key Levels to Watch
- Resistance: A breakout above the 1-month high of $100 could serve as a critical catalyst for a sustained bullish run. This level represents a psychological barrier, and a decisive move above it could attract more buyers.
- Support: In the event of a pullback, immediate support lies at the 65% Fibonacci retracement level, which aligns with the $92 mark. This level could act as a springboard for renewed upward momentum.
RSI Indicates Room for Growth
The Relative Strength Index (RSI) stands at 55, indicating that the stock is neither overbought nor oversold. This suggests there is ample room for further upside, especially if the broader market sentiment remains favorable.
Conclusion
Gilead Sciences (GILD) is firing on all cylinders, with a strong Q4 earnings beat, robust guidance for 2025, and a promising pipeline. The company’s leadership in the HIV market, coupled with its growing presence in oncology and liver disease, positions it well for long-term growth. From a technical standpoint, the stock is primed for a breakout, with key resistance and support levels offering clear markers for traders and investors.
