Gilead Sciences Q1 Results Surpass Street Expectation, FY22 Outlook Midpoint Trails Consensus

Gilead Sciences, Inc. GILD reported first-quarter revenue growth of 3% year-over-year to $6.59 billion, beating the consensus of $6.28 billion.

The increase is attributed to demand for Biktarvy® and Veklury®, partially offset by the loss of exclusivity for Truvada® in the United States and unfavorable pricing dynamics for hepatitis C virus products.

“Biktarvy delivered strong 18% year-over-year revenue growth, and oncology sales increased by 60% year-over-year, driven by increased demand for Trodelvy and our cell therapy products,” commented Daniel O’Day, Chairman, and Chief Executive Officer, Gilead Sciences.

Q1 Adjusted EPS was $2.12, beating the consensus of $1.80.

Product gross margin was 78.2% compared to 78.5% in 1Q21. Adjusted R&D expenses were $1.2 billion compared to $1 billion in 1Q21.

As of March 31, 2022, Gilead had $6.8 billion in cash and equivalents. It generated $1.8 billion in operating cash flow, including the cash outflow related to the $1.25 billion legal settlement.

During the quarter, the company made a $725 million collaboration opt-in payment to Arcus Biosciences, Inc., repaid $500 million of debt, paid dividends of $945 million, and repurchased $352 million of common stock.

Dividend: Gilead declared a quarterly dividend of $0.73 per share of common stock for Q2. The dividend is payable on June 29, 2022, to stockholders of record at the close of business on June 15, 2022.

The company received FDA approval for commercial production at Kite’s new CAR T-cell therapy manufacturing facility in Frederick, Maryland.

FY22 Outlook: GILD expects total product sales of $23.8 billion and $24.3 billion, vs. a consensus of $24.5 billion; Total Veklury sales of ~$2 billion.

It expects EPS of $3.00 - $3.50 (prior expectation of $4.70 and $5.20) and Non-GAAP earnings per share of $6.20 and $6.70, vs. a consensus of $6.50.

Price Action: GILD shares are trading lower by 0.55% at $61.22 during the post-market session on Thursday.