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

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%.

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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 Veklury of $24.6 billion to $25.0 billion, compared with prior guidance of $24.0 billion to $24.5 billion.

The company now expects Veklury sales of about $1.7 billion, down from about $2.0 billion previously.

Gilead expects its adjusted EPs to range from $6.45 to $6.80, compared with prior guidance of $6.60 to $7.00. The FactSet consensus is for EPS of $6.72.

The stock has fallen 12% in the year to date, while the S&P 500
SPX,
-0.25%
has gained 17%.

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