At the Battle of Thermopylae, 300 Spartans, or so the legend goes, held off the Persian army to allow a larger force to retreat–and eventually win the day. Can Gilead Sciences (GILD) pull off a similar feat when it reports earnings on May 2?
Gilead has tumbled 35% during the last 12 months, as sales of its hepatitis-C franchise slumped. Its last earnings call was particularly disappointing, as Gilead slashed its hep-C guidance, causing its shares to tumble 8.6% in just one day.
With earnings coming up, BMO’s M. Ian Somaiya and team contend that Gilead Sciences needs to keep that reduced guidance intact if it’s going to get investors interested again. They explain why: