Gilead Sciences, Inc. Second Quarter Earnings Preview

S&P 500 (NYSE:SPY) component Gilead Sciences, Inc. (NASDAQ:GILD) will unveil its latest earnings on Tuesday, July 26, 2011. Gilead Sciences Inc. is a biopharmaceutical company which discovers, develops and commercializes therapies for viral diseases, infectious diseases and cancer.

Gilead Sciences, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 96 cents per share, a rise of 18.5% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged and it has not changed during the last month. For the year, analysts are projecting net income of $3.77 per share, a rise of 7.4% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the first quarter, the company reported profit of 82 cents per share versus a mean estimate of net income of 92 cents per share. In fourth quarter of the last fiscal year, the company beat estimates by one cent.

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Wall St. Revenue Expectations: On average, analysts predict $2.07 billion in revenue this quarter, a rise of 7.3% from the year ago quarter. Analysts are forecasting total revenue of $8.27 billion for the year, a rise of 4% from last year’s revenue of $7.95 billion.

Analyst Ratings: Analysts are bullish on this stock with 18 analysts rating it as a buy, none rating it as a sell and eight rating it as a hold.

Key Stats:

The company has now seen net income fall in each of the last two quarters. In the first quarter, net income fell 23.8% from the year earlier quarter, while the figure dropped 21.5% in the fourth quarter of the last fiscal year.

Revenue has fallen in the past two quarters. In first quarter, revenue declined 7.7% to $1.93 billion from the year earlier quarter. In the fourth quarter of the last fiscal year, the figure fell 1.7%.

Competitors to Watch: GlaxoSmithKline plc (NYSE:GSK), Pfizer Inc. (NYSE:PFE), Merck & Co., Inc. (NYSE:MRK), Johnson & Johnson (NYSE:JNJ), Bristol Myers Squibb Co. (NYSE:BMY), Idenix Pharmaceuticals, Inc. (NASDAQ:IDIX), Trimeris, Inc. (NASDAQ:TRMS), BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX), and Hemispherx BioPharma, Inc (AMEX:HEB).

Stock Price Performance: During April 25, 2011 to July 20, 2011, the stock price had risen $2.59 (6.6%) from $39.20 to $41.79. The stock price saw one of its best stretches over the last year between March 1, 2011 and March 9, 2011 when shares rose for seven-straight days, rising 8% (+$3.09) over that span. It saw one of its worst periods between April 4, 2011 and April 12, 2011 when shares fell for seven-straight days, falling 3.9% (-$1.67) over that span. Shares are up $5.55 (+15.3%) year to date.

(Source: Xignite Financials)

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