Gilead (Nasdaq:GILD) announced its results for the most recent quarter on October 23, 2012. Gilead Sciences is a biopharmaceutical company which discovers, develops and commercializes therapies for viral diseases, infectious diseases and cancer.
In most situations, when earnings do not meet analyst estimates, a business' stock price will tend to drop. On the other hand, when actual earnings beat estimates by a significant amount, the share price will likely surge. SEE: 12 Things You Need To Know About Financial Statements
The Numbers: Gilead's latest numbers were good, as the company announced EPS and revenues that came in ahead predictions. The company reported adjusted net income of $1 per share versus the 92 cents per share estimate and revenues of $2.43 billion versus the $2.29 billion estimate. Revenue climbed 14.4% from the same period last year. Gilead's revenue has grown during each of the past four quarters on a year-over-year basis. The company's net income for the quarter was $675.5 million. This is a 8.9% decline from last year. Last quarter marks the third in a row in which the company's net income has fallen. Profits declined 4.6% in the second quarter and 32.1% in the first quarter.
A Look Back: Margins rose in the second quarter after falling the quarter before. Gross margin grew 0.5 percentage point from the year-earlier quarter to 75.4%. In the first quarter, the figure rose 0.7 percentage point to 74.3% from the year earlier quarter.
Looking Ahead: Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the fourth quarter has moved down from 91 cents a share to 90 cents over the last 30 days. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. The average estimate for the fiscal year is $3.44 per share, down from $3.67 90 days ago.