Gilead Sciences, Inc. (NASDAQ:GILD) Full Year Outlook Under Threat On Sales Slowdown


Dallas, Texas 07/14/2015 (Financialstrend) – Gilead Sciences, Inc. (NASDAQ:GILD) full year consensus estimates might be at risk should the company not find an immediate solution to ongoing weaknesses on the sale of its two lead drugs. Sales for hepatitis C drugs Sovaldi and Harvoni have reportedly been on a decline much to the concern of the Street that the company might struggle to meet its full-year outlook.

Q2 Earnings Expectations

The company is expected to post its second-quarter results at the end of the month but with no major concerns that a slowdown in sales had an impact on earnings. The Street will wait to see if Gilead Sciences, Inc. (NASDAQ:GILD) met it second quarter estimates $3.1 billion in the US and $4.3 billion worldwide. During the first quarter, the company posted worldwide sales of $4.5 billion.

There is no doubt that the company will meet its second quarter outlook but with huge reservation about the third and fourth quarter. Investors will want to hear what the management has to say on the full year outlook that currently stands at $17.5 billion and $17.3 billion in Sovaldi/ Harvoni worldwide sales.

International Sales Acceleration

There are fears that sales in the US for the hepatitis C drug might experience a decline even as worldwide sales accelerate.  How fast the decline in the US will be, remains to be seen as hopes shift to international sales to offset the deficit.  The sentiments have not hurt Gilead Sciences, Inc. (NASDAQ:GILD)’s sentiments in the Street as the stock is up by 22% year to date and ranked second best among other large-cap biotech’s

How well the stock performs heading into year-end will mostly be determined by the management’s sentiments on posting the second quarter results.  Gilead Sciences, Inc. (NASDAQ:GILD) has performed extremely well this year mostly driven by share repurchases already carried out as well as investor belief that the company is on course to complete a transformative acquisition.