Gilead Sciences Reports Worse-Than-Expected Q1 Earnings; Revenues Plunge 16.5% Y-O-Y
Written by StockNews.com
Gilead Sciences, Inc. (GILD) late Tuesday posted worse than expected first quarter earnings results and revenue, as sales of its HCV-focused drugs plummeted 40% from last year.
The Foster City, CA-based biopharmaceuticals giant reported Q1:
- earnings per share (EPS) of $2.23, which was $0.05 worse than the Wall Street consensus estimate of $2.28 [and that]
- revenues fell 16.5% from last year to $6.5 billion, also missing analysts’ view for $6.62 billion.
- HIV and HBV product sales were $3.3 billion, up 14% from $2.9 billion in the year-ago period while
- HCV product sales plunged 40% to $2.6 billion, from $4.3 billion last year.
Looking ahead, GILD:
- reaffirmed its full-year 2017 guidance for net product sales of $22.5 to $24.5 billion, with adjusted gross margins between 86% 88%.
The company commented on its sizable cash position at the end of the quarter, along with its returns to shareholders, via press release:
As of March 31, 2017, Gilead had $34.0 billion of cash, cash equivalents and marketable securities compared to $32.4 billion as of December 31, 2016.
Cash flow from operating activities was $2.9 billion for the quarter.
During the first quarter of 2017, Gilead utilized $565 million on stock repurchases and paid cash dividends of $687 million.
Gilead Sciences, Inc. shares fell more than 2% in after-hours trading Tuesday. Year-to-date, GILD had declined -3.48% prior to today’s report, versus a +7.28% rise in the benchmark S&P 500 index during the same period.
GILD currently has a StockNews.com POWR Rating of C (Neutral) and is ranked #71 of 273 stocks in the Biotech category.
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