Gilead Sciences Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Gilead Sciences (NASDAQ:GILD) will unveil its latest earnings tomorrow, Monday, February 4, 2013. Gilead Sciences is a biopharmaceutical company which discovers, develops and commercializes therapies for viral diseases, infectious diseases and cancer.

Gilead Sciences Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 45 cents per share, a decline of 2.2% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved up. It has dropped from 46 cents during the last month. Analysts are projecting profit to rise by 4.9% compared to last year’s $1.74.

Past Earnings Performance: The company is looking to beat analyst estimates for the third quarter in a row. Last quarter, it beat estimates with net income of 47 cents per share against the mean estimate of 45 cents. In the prior quarter, the company reported profit of 47 cents.

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Stock Price Performance: Between January 23, 2013 and January 29, 2013, the stock price dropped $36.94 (-48.1%), from $76.84 to $39.90. The stock price saw one of its best stretches over the last year between September 11, 2012 and September 21, 2012, when shares rose for nine straight days, increasing 14.2% (+$8.45) over that span. It saw one of its worst periods between December 18, 2012 and December 26, 2012 when shares fell for six straight days, dropping 4.4% (-$3.37) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 10.5% in revenue from the year-earlier quarter to $2.43 billion.

A Look Back: In the third quarter, profit fell 8.9% to $675.5 million (85 cents a share) from $741.1 million (95 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 14.4% to $2.43 billion from $2.12 billion.

Here’s how Gilead Sciences traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

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Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 13.9% over the last four quarters.

The company is trying to use this earnings announcement to rebound from profit declines in the last three quarters. Net income fell 32.1% in the first quarter, by 4.6% in the second quarter and again in the third quarter.

Analyst Ratings: With 20 analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.26 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)