Gilead’s earnings looked strong enough on the surface that you might think the shares would soar, but there may be some continued drug cost concerns that gives Uncle Sam a better argument that Gilead should be charging less for Sovaldi for hepatitis C.
Gilead reported earnings at $1.48 per share, way above the $0.89 per share estimate. Gilead reiterated its 2014 guidance. Sales were roughly $1 billion higher than expected after it showed revenues of $5 billion. The bulk of that driving agent was Sovaldi’s $2.3 billion in sales in its first full quarter, when analysts were expecting something closer to $1.4 billion.
Gilead shares rose 1.75% to $72.86 on the day, but the after-hours move after the stock was freed up from a stock halt was up 3.5% at $75.40. Again, the concern is likely one that its already high Sovaldi drug costs are simply price gouging.
ALSO READ: GW Pharma Cannabinoid Endorsement by Morgan Stanley and Jim Cramer
Amgen shares fell in the after-hours trading session due to earnings under its forecast. Adjusted earnings per share was $1.87, south of the estimates of $1.94 per share. Revenue was also light with 7% growth at $4.52 billion versus estimates of about $4.75 billion.
The good news is that Amgen did reiterate its 2014 forecast of $7.90 to $8.20 in earnings per share, versus a Thomson Reuters consensus of $8.16 per share. Revenue is being put at $19.2 billion to $19.6 billion, just shy of the $19.62 billion expected for the year.
Keep in mind that Amgen’s first quarter includes results for Onyx Pharmaceuticals, which it acquired on October 1, 2013. Amgen closed up almost 2% at $119.30 and the drop was almost 3% to $115.80 in the after-hours session.
Top Gaining Stocks
Top Losing Stocks