Gilead Sciences (GILD) Tops Q3 EPS by 16c, Remdesivir Revenue $873M in Qtr; Lowers FY EPS Guidance
Gilead Sciences (NASDAQ: GILD) reported Q3 EPS of $2.11, $0.16 better than the analyst estimate of $1.95. Revenue for the quarter came in at $6.6 billion versus the consensus estimate of $6.39 billion. Veklury (remdesivir) revenues were $873 million for the third quarter.
“The recent acquisition of Immunomedics has effectively transformed Gilead’s growth story. Building on the foundation of our strong core business, which proved its durability once again this quarter, we have now significant opportunity to drive additional growth at an accelerated pace,” said Daniel O’Day, Chairman and Chief Executive Officer, Gilead Sciences. “Trodelvy, an approved medicine with extensive potential for patients with a range of tumor types, adds to our growing portfolio of transformational medicines. By following the strategy we laid out at the start of this year, we have significantly improved Gilead’s near and long-term growth potential.”
GUIDANCE:
Gilead Sciences sees FY2020 EPS of $6.25-$6.60, versus the consensus of $6.98.
Updated Full Year 2020 Guidance
Gilead’s 2020 guidance has been updated to reflect the continued global progression of the COVID-19 pandemic, including infection rates, hospitalization rates and broad commercial availability of Veklury, resulting in a tightening of the estimated revenue range. As mentioned elsewhere, Veklury generates revenue within a highly dynamic and complex global health environment, which continues to evolve.
(In millions, except percentages and per share amounts) |
| Initially Provided |
| Previously Updated |
| Updated |
Product Sales |
| $21,800 - $22,200 |
| $23,000 - $25,000 |
| $23,000 - $23,500 |
Non-GAAP |
|
|
|
|
|
|
Product Gross Margin |
| 86% - 87% |
| 86% - 87% |
| 86% - 87% |
R&D Expenses |
| Mid-single digit percentage growth |
| Mid-teens percentage growth |
| Mid-teens percentage growth |
SG&A Expenses |
| Mid-single-digit percentage growth |
| High single-digit percentage growth |
| Low double-digit percentage growth |
Operating Income |
| $10,100 - $10,800 |
| $10,700 - $13,000 |
| $10,700 - $11,200 |
Effective Tax Rate |
| ~ 21% |
| ~ 21% |
| ~ 20% |
Diluted EPS |
| $6.05 - $6.45 |
| $6.25 - $7.65 |
| $6.25 - $6.60 |
GAAP Diluted Earnings (Loss) Per Share |
| $5.15 - $5.55 |
| $0.83 - $2.23 |
| $(0.25) - $0.10 |
Outlook
The COVID-19 pandemic continues to impact Gilead’s business and broader market dynamics, including HCV and PrEP market volume. Gilead expects its core business will continue to gradually recover in the fourth quarter 2020 and into the first half of 2021. Gilead expects that the company’s HIV treatment business will continue to remain largely unaffected and that by the first quarter of 2021, patients with HCV will begin to initiate treatment. The acquisition of Immunomedics will immediately contribute to Gilead’s revenue growth and is expected to be neutral to accretive to Gilead’s non-GAAP EPS in 2023 and significantly accretive thereafter. The fundamentals of Gilead’s business and long-term outlook remain strong.
For earnings history and earnings-related data on Gilead Sciences (GILD) click here.