Gilead Sciences' 34-point margin and 15.4% EPS declines dampen post-Q2 appeal
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Gilead Sciences shares have fallen 11.3% over six months to $137.77, while the S&P 500 gained 13.1%. The company's five-year adjusted operating margin fell 34.2 percentage points and EPS declined 15.4% annually. Analysts say the stock is unattractive relative to alternative picks.
Key Facts
- Gilead Sciences shares fell 11.3% over six months to $137.77, versus the S&P 500's 13.1% gain.
- Gilead Sciences' revenue grew at a 2.7% compound annual rate over five years.
- The company's adjusted operating margin declined 34.2 percentage points over five years to 9.7% for the trailing 12 months.
- EPS fell 15.4% annually over five years while revenue grew 2.7%.
- The stock trades at 14.9× forward P/E after the recent decline.
Stock Slide
Gilead Sciences shares have sunk to $137.77 over the last six months, an 11.3% loss. The S&P 500 gained 13.1% over the same period. The stock now trades at 14.9× forward P/E following the decline.
Five-Year Profitability
Gilead Sciences' revenue grew at a 2.7% compound annual rate over five years. Its adjusted operating margin fell 34.2 percentage points over five years. The trailing 12-month adjusted operating margin was 9.7%. EPS declined 15.4% annually over five years while revenue grew 2.7%.
Analyst Verdict
Gilead Sciences is not one of the firm's picks after Q2 earnings. The firm points to a software and edge computing stock as a superior alternative. The current valuation is fair but upside is limited relative to downside.
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Gilead Sciences' 34-point margin and 15.4% EPS declines dampen post-Q2 appeal
