Gilead Sciences's Earnings Outlook
On Thursday, February 04, Gilead Sciences (NASDAQ:GILD) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.
What Are Earnings, Net Income, And Earnings Per Share?
Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.
Earnings And Revenue
Analysts predict Gilead Sciences will report earnings of $1.99 per share on revenue of $6.93 billion. In the same quarter last year, Gilead Sciences reported EPS of $1.3 on revenue of $5.88 billion.
Why Analyst Estimates And Earnings Surprises Are Important
Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.
The analyst consensus estimate would represent a 53.08% increase in the company's EPS figure. Sales would be up 17.88% on a year-over-year basis. Here is how the company's EPS has stacked up against analyst estimates in the past:
EPS Estimate | 1.95 | 1.45 | 1.57 | 1.67 |
EPS Actual | 2.11 | 1.11 | 1.68 | 1.30 |
Revenue Estimate | 6.39 B | 5.31 B | 5.45 B | 5.71 B |
Revenue Actual | 6.58 B | 5.14 B | 5.55 B | 5.88 B |
Stock Performance
Over the past 52-week period, shares of Gilead Sciences have declined 4.24%.
Do not be surprised to see the stock move on comments made during its conference call. Gilead Sciences is scheduled to hold the call at 16:30:00 ET and can be accessed here.
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