uploads/2019/05/Graph-3-15-1.png

Comparing the Non-GAAP EPS Trajectories of Gilead and Biogen

By

Updated

EPS guidance

In its first-quarter earnings investor presentation, Gilead Sciences (GILD) reaffirmed its product gross margin guidance of 85%–87% and a diluted EPS impact of GAAP (generally accepted accounting principles) to non-GAAP adjustments of $1.40–$1.50 for 2019. The company reported non-GAAP EPS of $1.76 in the quarter, a YoY (year-over-year) rise of 9.17% and $0.16 higher than the consensus estimate. In the first quarter, the company repurchased 12 million shares worth $834 million.

Article continues below advertisement

In its fourth-quarter earnings press release, Biogen (BIIB) guided for GAAP EPS of $26.65–$27.65 and non-GAAP EPS of $28.00–$29.00 in 2019. In the first quarter, the company reported non-GAAP EPS of $6.98, a YoY rise of 15.37% and $0.02 higher than the consensus estimate. The company reported GAAP EPS of $7.15, a YoY rise of 29%.

According to its first-quarter earnings conference call, as of April 24, 2019, Biogen had repurchased 4.5 million shares worth $1.1 billion under its 2018 repurchase program. The company is authorized to repurchase an additional $1.0 billion worth of shares under that program. In March 2019, the company announced a new share repurchase program worth $5.0 billion.

Wall Street estimates

Analysts expect Gilead Sciences’ non-GAAP EPS to see YoY rises of 2.56% to $6.84 in 2019, 1.90% to $6.97 in 2020, and 0.56% to $7.01 in 2021. On the other hand, analysts expect Biogen’s non-GAAP EPS to see YoY rises of 12.89% to $29.58 in 2019, 3.40% to $30.58 in 2020, and 0.20% to $30.65 in 2021.

Analysts expect Gilead Sciences’ non-GAAP EPS to see YoY changes of -10.93% to $1.70 in the second quarter, -7.32% to $1.71 in the third quarter, and 18.10% to $1.70 in the fourth quarter of 2019. Analysts also expect Biogen’s non-GAAP EPS to see YoY rises of 28.36% to $7.45 in the second quarter, 1.76% to $7.53 in the third quarter, and 9.50% to $7.65 in the fourth quarter.

 

 

Advertisement

More From Market Realist