Gilead Slips 3.6% as Q4 Earnings Fall Year-Over-Year

Shares of Gilead Sciences, Inc. (GILD) slipped 3.6% in Tuesday’s extended trading session on the back of mixed Q4 results. The company’s performance was majorly affected by a $1.25 billion charge related to a legal settlement and a charge of $625 million due to the Arcus Biosciences collaboration opt-in.

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Gilead engages in the research, development, and sale of antiviral drugs for the treatment of diseases like human immunodeficiency virus (HIV), hepatitis B, hepatitis C, and influenza.

Adjusted earnings per share (EPS) fell 68.5% year-over-year to $0.69, lagging the Street’s estimate of $1.52. The company reported revenue of $7.2 billion, which beat analysts’ expectations of $6.51 billion. However, sales declined 2% from last year’s quarter due to lower demand for its COVID-19 drug.

During the quarter, HIV product sales climbed 7% year-over-year to $4.5 billion due to higher Biktarvy demand and favorable pricing dynamics in HIV. HBV and hepatitis delta virus product sales rose 9% to $265 million and sales of Cell Therapy products soared 47% to $239 million. Meanwhile, HCV product sales fell 7% to $393 million.

The Chairman and CEO of Gilead, Daniel O’Day, said, “We are planning to further increase the number of clinical development studies across our novel oncology portfolio in 2022. We also look forward to advancing our longacting programs for HIV… We have all the elements in place for a strong year and a strong decade.”

Outlook

The company has provided guidance for 2022. It expects product sales to lie between $23.8 billion and $24.3 billion. The company anticipates Veklury sales to be $2 billion due to the recent surge in COVID-19 related hospitalizations. Further, GILD anticipates adjusted EPS to range from $6.20 to $6.70.

Dividend History

Since 2016, GILD stock dividend has been increasing once each year with the trend continuing in 2021 as well. The company has announced a 2.8% hike in its quarterly common stock dividend to $0.73, which is payable on March 30.

Hedge Fund Trading Activity

TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Gilead is currently Very Positive, as the cumulative change in holdings across all 16 hedge funds that were active in the last quarter was an increase of 8.2 million shares.

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