Gilead Sciences Stock Surges 7.46% Amid Strong Earnings and Optimistic Forecasts

Gilead Sciences (GILD) has recently witnessed a notable rise in its stock value, climbing 7.46% on February 12, marking two consecutive days of gains and setting a new intraday peak not seen since December 2015. This surge reflects investor optimism following the release of its 2024 annual report and several upward revisions in stock price targets by financial analysts.

The annual report revealed that Gilead's revenue for the year ending December 31, 2024, reached $287.54 billion, a 6.04% increase compared to the previous year. Despite this growth, the net income was reported at $4.80 billion, resulting in a basic earnings per share of $0.38. As a research-driven biopharmaceutical company established in Delaware in 1987, Gilead Sciences continues to focus on developing and commercializing innovative therapies for unmet medical needs, particularly in fields like viral diseases, inflammatory and fibrotic diseases, and oncology.

The recent uptrend was further fueled by favorable Q4 financial results. Gilead reported a quarterly net income surge of 25% year-over-year to $17.83 billion, translating to a diluted earnings per share of $1.42, or $1.90 on an adjusted basis, surpassing analysts' expectations of $1.70. Total revenue for the quarter rose 6% to $75.69 billion, beating the market forecast of $71.4 billion, mainly driven by a 16% increase in HIV treatment sales to $55 billion.

Looking ahead, Gilead projected its 2025 sales to range between $282 billion and $286 billion, aligning closely with market expectations of $284.2 billion. The company also forecasted its adjusted earnings per share to fall between $7.7 and $8.1, which stands above the anticipated $7.58. These projections suggest a steady confidence in its strategic direction and ability to sustain growth amidst ongoing challenges in the biopharmaceutical landscape.