Earnings Results: Gilead’s profit lags consensus but sales beat, sending stock up after hours

by | Aug 3, 2023 | Stock Market

Gilead Sciences Inc.’s stock fell, then reversed those losses in after-hours trade Thursday, after the drug company posted weaker-than-expected second-quarter profit and tweaked its guidance. The stock was last up 0.6%, after dipping more than 2% immediately after the numbers were released.

Foster City, Calif.-based Gilead
posted net income of $1.045 billion, or 83 cents a share, for the quarter, down from $1.144 billion, or 91 cents a share, in the year-earlier period. Adjusted per-share earnings came to $1.34, well below the $1.64 FactSet consensus. Revenue rose to $6.564 billion from $6.138 billion a year ago, and was ahead of the $6.454 billion FactSet consensus. Revenue growth was driven by increased sales in HIV and oncology drugs, offsetting a decline in sales of the COVID treatment Veklury, also known as remdesivir. The company’s HIV treatments generated sales of $4.6 billion, up 9% from a year ago, driven by higher pricing and higher demand. Biktarvy sales rose 17%, while Descovy sales rose 12%. See also: Merck swings to loss as it books charge on $10.8 billion acquisition of Prometheus Biosciences The liver-disease portfolio saw sales of $711 million, up 4% from a year ago. Sales of the cancer drug Trodelvy rose 63% to $260 million, driven by growing adoption in pre-treated HR+/HER2- metastatic breast cancer in the U.S. Sales of Veklury fell 43% to $256 million as the world continues to emerge from the COVID pandemic. Gilead said it now expects full-year product sales of $26.3 billion to $26.7 billion, compared with prior guidance of $26.0 billion to $26.5 billion. The FactSet consensus is for product sales of $26.4 billion. It expects sales excluding Ve …

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