Has Gilead Finally Bottomed?
Gilead Sciences Inc. (NASDAQ: GILD) released third-quarter earnings report after markets closed on Tuesday. Despite negative news coming out on Tuesday with former presidential candidate Bernie Sanders taking a shot at the healthcare sector, Gilead still came out positive on the day even though earnings were mixed. The stock has been pushing lower over the course of the year, and on an earnings report where investors might expect it to go lower, Gilead has held steady.
The company posted $2.75 in earnings per share (EPS) and $7.5 billion in revenue. There are consensus estimates that are calling for $2.86 in EPS and $7.45 billion in revenue. The same period from last year had $3.22 in EPS and $8.29 billion in revenue.
Product sales for the third quarter of 2016 were $5.1 billion in the United States, $1.4 billion in Europe, $452 million in Japan and $479 million in other locations. These sales all decreased from 2015, with the exception of the Japan segment.
Antiviral product sales, which include primarily products in Gilead’s HIV and liver disease areas, were $6.8 billion for the third quarter of 2016 compared to $7.7 billion for the same period in 2015.
Hepatitis C Vaccine (HCV) product sales, which consist of Harvoni, Sovaldi and Epclusa, were $3.3 billion compared to $4.8 billion for the same period in 2015. The decline was due to lower sales of Harvoni and Sovaldi, partially offset by sales of Epclusa, which was launched in the United States and Europe in June and July.
Cash flow from operating activities was $4.3 billion for the quarter. On the books, cash, cash equivalents, and marketable securities totaled $31.6 billion at the end of the quarter, versus $24.6 billion in June of 2016.
The board of directors declared a cash dividend of $0.47 per share of common stock for the fourth quarter. The dividend is payable on December 29, to stockholders of record at the close of business on December 15.
Shares of Gilead closed Tuesday at $74.07, with a consensus analyst price target of $99.70 and a 52-week trading range of $72.21 to $109.73. Following the release of the earnings report, the stock was initially up only slightly at $74.25 in the after-hours trading session.