For the first quarter, Gilead reported non-GAAP diluted EPS of $1.48 per share versus an expected $0.91. For 2014, the consensus estimate is for earnings of $6.31 per share, versus $2.04 in 2013. Analysts expect $7.85 in 2015.
On April 23, S&P reiterated its “strong buy” rating on the stock, saying the company’s hepatitis C program “has achieved a dominant market position, complementing its market-leading HIV franchise.”
GILD was the victim of profit-taking in the biotech sector and pressure from the government to lower the price of hepatitis C treatment Sovaldi. S&P analysts said they believe Gilead will make “some pricing concessions” for Medicaid patients.
The stock made a bullish “V” bottom in April. Last week, resistance just under $85 broke, confirming a cup-and-handle with a trading target of $105. Long-term investors could reap much bigger gains.