NEW YORK (TheStreet) -- Shares of Gilead Sciences (GILD) - Get Report closed lower on Monday as Citigroup analysts said the company's outlook for sales of its Hepatitis C drugs could be the most important component of its 2016 third-quarter results, due out after tomorrow's market close.
Analysts surveyed by FactSet are looking for adjusted earnings of $2.84 per share on revenue of $7.45 billion for the quarter. During the same period of 2015, Gilead posted adjusted earnings of $3.22 per share and $8.30 billion in revenue.
Citigroup notes that the Foster City, CA-based biopharmaceutical company has reported "disappointing" Hepatitis C sales for the last two quarters, according to Barron's.
The firm expects U.S. Hepatitis C numbers to miss in the third quarter given IMS Health's downbeat sales outlook for the segment.
IMS Health projects Hepatitis C sales in the range of $1.78 billion to $1.85 billion, while the FactSet consensus is for $2.32 billion in Harvoni sales and $1.06 billion in Sovaldi sales.
"However, we believe Hepatitis C miss may already be part of buy-side expectations as IMS Health has continuously been pointing to a miss through the Q," the firm said in an analyst note, Barron's reports. "We note that the key is that HCV new starts have started to stabilize around ~2800/wk for Gilead after the lows of ~2500 touched in July '16."
Gilead stock could be helped if the company could provide some confidence in Hepatitis C numbers in its guidance tomorrow, Citigroup added.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
The team rates Gilead as a Buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels and expanding profit margins. The team feels its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: GILD