NEW YORK (TheStreet) -- Shares of Gilead Sciences (GILD) - Get Report are falling 2.08% to $79.55 after the company reported disappointing guidance for the 2016 third quarter following Monday's market close.
Gilead revised its guidance for 2016 total product sales to a range of $29.5 billion to $30.5 billion, down from previous estimates of $30 billion to $31 billion.
The company is suffering from lower sales in its key market, Hepatitis C medication.
In all, the Foster City, CA-based biopharma company reported adjusted earnings of $3.08 per share, topping estimates of $3.02 per share, but total revenue fell 5% year-over-year to $7.78 billion. However, revenue still beat estimates of $7.77 billion.
Following the report, analysts at Argus Research downgraded the company to "hold" from a "buy" rating.
Argus is just one of the firms to adjust its rating or target on the company this week. RBC Capital on Tuesday trimmed its price target on Gilead stock to $105 from $120 given the company's lower guidance.
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.
TheStreet Ratings rated this stock 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. We feel 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