Gilead Stock Jumps On Strong Q2 Performance Despite Lower Profit Outlook Amid Litigation

Gilead Sciences Inc's GILD Q2 FY23 sales increased 6% Y/Y to $6.60 billion, above the consensus of $6.43 billion, primarily driven by increased sales in HIV and Oncology, partially offset by lower Veklury (remdesivir) sales.

Product sales increased 7% to $6.6 billion, and excluding Veklury, product sales increased 11% to $6.3 billion.

HIV product sales increased 9% to $4.6 billion, with Biktarvy bringing in almost $3 billion.

The company reported adjusted EPS of $1.34, down 15% Y/Y, lagging the consensus of $1.61. The company said earnings were hurt by a $525 million, or $0.32 a share, charge related to HIV antitrust litigation settlements.

Also Read: Trial Setback For Gilead Sciences: Shuts Late-Stage Magrolimab/Azacitidine Combo Study In Type Of Blood Cancer.

Guidance: Gilead revises FY23 sales guidance to $26.3 billion-$26.7 billion compared to previous guidance of $26-$26.5 billion versus the consensus of $26.66 billion. 

It forecasts adjusted EPS of $6.45-$6.80 versus the prior guidance of $6.60-$7.00 compared to consensus of $6.73.

Total product sales, excluding Veklury, are expected to be $24.6 billion-$25.0 billion, compared to $24.0 billion-$24.5 billion expected previously.

Total Veklury sales of approximately $1.7 billion, compared to approximately $2.0 billion expected previously.

Price Action: GILD shares are up 5.53% at $79.71 on the last check Friday.