Can GILD sustain its EPS growth trend into 2025?
3/28/2025 05:37pm
**Gilead Sciences (GILD) is poised to sustain its EPS growth trend into 2025**, based on several key factors:
1. **Strong Financial Performance**: Gilead has demonstrated robust financial results, with a 55.79% return over the past year and a reported better-than-expected performance in product sales, particularly from HIV drug Biktarvy and COVID-19 treatment Veklury. The company has also raised its outlook for product sales and operating income, indicating confidence in its continued growth.
2. **Earnings Growth Projections**: Analysts forecast a significant year-over-year change in EPS for Gilead, with estimates for 2025 ranging from $7.70 to $8.10, above the consensus estimate of $7.60. This suggests that Gilead's EPS growth trend is expected to continue.
|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|GILD|GILD.O|Gilead Sciences|2024 Q1|-517.4999999999999|-3.34|185|
|GILD|GILD.O|Gilead Sciences|2024 Q2|55.421686746987966|1.29|185|
|GILD|GILD.O|Gilead Sciences|2024 Q3|-42.19653179190752|1|185|
|GILD|GILD.O|Gilead Sciences|2024 Q4|24.561403508771935|1.42|185|
3. **Revenue Growth Potential**: Gilead's revenue guidance for 2025 is $28.2 billion to $28.6 billion, compared to the consensus estimate of $28.4 billion. This indicates a potential for continued revenue growth, which is a key driver of EPS growth.
4. **Dividend and Investor Confidence**: Gilead's dividend yield of 2.65% is above the industry average, which could attract income-focused investors and contribute to the stock's stability and potential for further price appreciation.
5. **Strategic Initiatives**: Gilead's recent initiatives, such as the launch of lenacapavir for HIV prevention and its efforts to reduce stigma associated with lung cancer, suggest a forward-thinking approach to market growth. These strategic moves could open new avenues for business expansion and support continued EPS growth.
6. **Analyst Optimism**: The consensus rating for Gilead is "Buy" or "Strong Buy" from multiple analysts, with price targets indicating potential upside from the current price. This suggests that analysts are optimistic about Gilead's future performance, including its EPS growth.
In conclusion, Gilead Sciences' strong financial performance, earnings growth projections, revenue growth potential, strategic initiatives, and analyst optimism all point to a likelihood that the company can sustain its EPS growth trend into 2025.