GILD

[earthtodan]

I hold a large position in GILD, I don't consider it speculative. They are very profitable, growing, and have been returning capital to shareholders through buybacks. Dividends are just another form of capital allocation.

[Dividend Watcher]

Speculative in the sense that it didn't pay dividends. When I reach retirement age in an ever-shortening time frame, all my holdings have to pay a dividend. Buybacks don't pay any of my bills. Now that they've instituted the dividend, the picture changes. Let's see if they will increase it regularly in the years ahead.

GILD's future looks pretty bright here, much like Amgen about 15 years ago, with a pretty interesting pipeline and solid products already on the market.

[Kerim]

What do you all make of the substantial drop today on news of discounting their Hep C products?

[earthtodan]

(02-04-2015, 12:47 PM)Kerim Wrote: What do you all make of the substantial drop today on news of discounting their Hep C products?

Bigger than expected discounting of HCV products, or "the price war is real" as Merrill puts it. Also a growing percentage of public vs. private payers, which pay less. In other words, the bear case is growing stronger.

Still, it remains a deep value stock and the multiple is compressing. S&P just raised their price target to $143.

[rapidacid]

Quote:Geoffrey Porges - Sanford Bernstein
Many items to ask questions about, but first and could you just quickly give us a comment on your intentions with the dividend is this something that we should expect you to continue to grow in the future or is it sort of static as it is? And secondly, is your guidance assuming 250,000 patients treated and a greater than 40% gross to net or is it assuming something different to that? Thanks very much.

Robin Washington - EVP and CFO
Hi Geoff, it's Robin, I’ll answer the first part of the question and I’ll turn the second part over to Paul. It is our intention to grow the dividend overtime, but I would say at the moment we still use share repurchases as the component that would be the larger percentage of our share return strategy, it will be larger than dividends for the foreseeable future.

Quote:Cory Kasimov
I'll get off with the HCV market dynamic questions for a minute and go back to the dividend. So I don’t think many people are expecting you to start paying one just yet. I am curious have anything changed with your thinking on this front and does this imply anything about the acquisition opportunities that you currently see in this market? Thanks.

Robin Washington - EVP and CFO
Hi Cory not at all this is Robin and may be John will chime in as well. But no really the timing of our dividend really reflects a confidence that we have in our business and our robust balance sheet as well as just the strength of our future cash flow as we look at it and again as we said all along there are no so vehicles that we can use to return free cash flow this gives us a disciplined approach of having a portion of it regular and something that people can count on or bake into their models and the rest will allow us to be flexible. But also as I mentioned it doesn’t in anyway prevent us from invested in our business our pipeline or M&A it be between our free cash flows as well as our access to borrowing capacity we don’t feel constrained in anyway by issuing a dividend.

Quote:Terence Flynn - Goldman Sachs
Just wondering if you guys have, thought about a target payout ratio with respect to buybacks and dividends overtime? And then second question is just regarding, you gave us some pretty detailed data on U.S. capacity, but what about EU capacity, any color there long-term? Thanks.

Robin Washington - EVP and CFO
Hi Terence, I’ll start with the first part. We don’t really want to set a target, again as I mentioned earlier our focus will still be primarily share repurchases for shareholder returns and that’s the level and aggressiveness with which we do them will really be based on how we feel about our evaluations. If you look over the past several years, we returned about 50 a little over 50% of our free cash flow and based on our evaluation, I mean that’s an area that we’re comfortable with, but we reserve the right to ratchet that down overtime I think particularly as you think about a dividend for the second half you’d expect us lower share repurchases a bit.

[rapidacid]

GILD crushed earnings

Gilead Sciences (NASDAQ:GILD): Q1 EPS of $2.94 beats by $0.62.

Revenue of $7.6B (+52.0% Y/Y) beats by $680M.

[Dividend Watcher]

rapid, thanks for those outtakes from the conference call. I'm not going to get to it (and some others) for a while since I'm in a time crunch right now.

The earnings stats are certainly a stunner. Can't wait to dig into that 10-Q.

[thedivhunter]

With the recent updates now looking at a 30% growth over the next three years in this stock. Starting to look pretty interesting
http://simplywall.st/NasdaqGS:GILD/gilea...ces#future

Even with the spike in price still think it is a good company to be in.

[EricL]

Blowout earnings once again.

- Gilead Sciences (NASDAQ:GILD): Q2 EPS of $3.15 beats by $0.44.
- Revenue of $8.2B (+25.6% Y/Y) beats by $590M.
- Press Release

[rapidacid]

(07-28-2015, 03:24 PM)EricL Wrote: Blowout earnings once again.

- Gilead Sciences (NASDAQ:GILD): Q2 EPS of $3.15 beats by $0.44.
- Revenue of $8.2B (+25.6% Y/Y) beats by $590M.
- Press Release

The most rudimentary of extrapolations has an 11 year P/E ratio average of 23.9 for GILD. At 3.15 * 4 * 23.9 that's a price of $301.25. Which would also make it a $446.5B market cap company

Seems there should be significant upside even if those lofty prices aren't reached.

[earthtodan]

BofA/Merrill still ranks it Underperform. They see the current cash haul as a temporary, and earnings falling over the next few years.

GILD still remains one of my largest positions.

[EricL]

(07-29-2015, 12:39 AM)earthtodan Wrote: BofA/Merrill still ranks it Underperform. They see the current cash haul as a temporary, and earnings falling over the next few years.

GILD still remains one of my largest positions.

Articles like this one keep me from thinking that this Hep C thing is any sort of temporary phenomenon.

Costly to Treat, Hepatitis C Gains Quietly in U.S.