Based in Foster City, California, Gilead Sciences Inc. (GILD - Analyst Report) is a major player in the healthcare industry. The biopharmaceutical company seeks to provide accelerated solutions for patients and the people who care for them. GILD has a broad-based focus on developing and marketing drugs to treat patients with infectious diseases, with a separate special focus on cancer.
 
The company is expected to see a decline in the sales of its main drug that is used to treat Hepatitis C, and there has been a great deal of speculation as to how investors will react to these expected declines.
 
Despite projected declines in its Hep C drug, the outlook for GILD’s earnings report remains positive. The consensus estimate saw a major jump between 60 and 90 days ago, up to the current EPS estimate of $2.83, compared to the previous estimate of $2.65 90 days ago.
 
Outlook is also positive thanks to GILD’s reported earnings history, as the company has been able to beat estimates in each of the last 4 quarters by an average of 15.52%.
 
GILD is currently a Zacks Rank #3 (Hold), though that ranking could be on the move soon due to the results of the company’s most recent earnings report. Below are several key highlights that have been taken from the company’s recently released report:
 
Earnings: GILD was able to beat on earnings significantly. The Zacks Consensus EPS estimate was $2.83, and GILD was able to post an actual EPS of $3.15. (These figures take out stock option expenses)
 
Revenue: GILD was also able to beat revenue estimates. It posted actual revenue of $8.2 billion, beating the Zacks Consensus Revenue Estimate of $7.36 billion.
 
Key Stat to Note: Research and Development expenses grew to $702 million for the quarter, up from $542 million for Q2 a year ago. Selling, general and administrative expenses also grew year over year, from $570 million in Q2 2014, to $761 million in Q2 2015.
 
Stock Price: As of 4:15 PM ET, GILD’s stock was up 2.56% to $116 per share, a $2.90 increase, in after hour trading.