Health and Healthcare
Why Gilead Earnings Were Not Up to Snuff
Published:
Last Updated:
Gilead Sciences Inc. (NASDAQ: GILD) reported fourth-quarter earnings after markets closed on Tuesday. The company posted $2.70 in earnings per share (EPS) and $7.3 billion in revenue, compared with the consensus estimates from Thomson Reuters that called for $2.61 in EPS and $7.15 billion in revenue. The same period from last year had $3.32 in EPS and $8.51 billion in revenue.
In terms of guidance for the 2017 full year, the company expects to see net product sales in the range of $22.5 billion to $24.5 billion. Non-HCV sales are expected to be in the range of $15.0 billion to $15.5 billion, while HCV product sales are expected to be in the range of $7.5 billion to $9.0 billion. The consensus estimates are calling for $10.68 in EPS and $28.07 billion in revenue for the coming year.
The company’s business segments reported:
- HIV and other antiviral product sales for the fourth quarter of 2016 were $3.4 billion, compared to $3.0 billion for the same period in 2015.
- HCV product sales, which consist of Harvoni, Sovaldi and Epclusa, were $3.2 billion for the fourth quarter of 2016, compared to $4.9 billion last year.
- Other product sales, which include Letairis, Ranexa and AmBisome, were $621 million for the fourth quarter of 2016, compared to $523 million.
The Board of Directors also declared an increase of 10% in the company’s quarterly cash dividend, beginning in the first quarter of 2017. The dividend increase will result in a quarterly dividend of $0.52 per share of common stock which is payable on March 30, 2017, to stockholders of record at the close of business on March 16, 2017.
During 2016, Gilead generated $16.7 billion in operating cash flow, utilized $11.0 billion to repurchase 123 million shares of its stock and paid cash dividends of $2.5 billion. On the books, cash, cash equivalents and marketable securities, totaled $32.4 billion at the end of the quarter, versus $26.2 billion in the same period last year.
Shares of Gilead closed Tuesday at $73.13, with a consensus analyst price target of $93.36 and a 52-week trading range of $69.78 to $103.10. Following the release, the stock was initially down nearly 4% at $70.38 in the after-hours trading session.
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the
advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
