Gilead Surpasses Expectations, Raises 2024 Forecast
Gilead Sciences Inc. exceeded Wall Street estimates in its third-quarter financial results, reporting a revised profit of $2.02 per share compared to the expected $1.55. Revenue also surpassed expectations, reaching $7.5 billion against the anticipated $7 billion. This performance led the company to raise its full-year earnings forecast.
The biopharmaceutical firm based in Foster City, California, experienced a 7% increase in sales, which played a significant role in the upward revision of its annual financial forecast. Gilead's CEO, Daniel O'Day, stated the company's intention to increase its guidance across all metrics for 2024, attributing this decision to the strength of Gilead's business model.
Reflecting the favorable financial report, Gilead's shares rose by over 3% in after-hours trading, reaching $94.60 after closing at $91.69 on Wednesday.
The company's success in this quarter was partly driven by a 13% increase in sales of its HIV drug, Biktarvy, which generated $3.5 billion in revenue. Additionally, sales of Veklury, a treatment for hospitalized COVID-19 patients, rose by 9% to reach $692 million. Oncologic and liver disease drug sales also contributed to the company's strong performance.
Despite the positive results, net earnings for the quarter fell to $1.00 per share, down from $1.73 last year. This decline is attributed to a $1.75 billion impairment charge related to Gilead's acquisition of Immunomedics in 2020.
Looking ahead, Gilead has revised its full-year product sales forecast, now expecting between $27.8 billion and $28.1 billion, an increase from the previous estimate of $27.1 billion to $27.5 billion. The company also raised its adjusted profit outlook to between $4.25 and $4.45 per share, up from the previous estimate of $3.60 to $3.90.
Analysts were projecting a full-year revenue of $27.72 billion with earnings of $3.81 per share, which Gilead is now preparing to exceed. RBC Capital Markets analyst Brian Abrahams noted that the company effectively controlled its expenses and acknowledged that the improved full-year earnings forecast was somewhat unexpected, particularly referencing Veklury's performance.
Gilead also announced plans to seek U.S. regulatory approval for an HIV prevention injection called lenacapavir before the end of the year.