Gilead Rises on Solid HCV Sales and Earnings Beat

Gilead Sciences Inc. (NASDAQ: GILD) reported fourth-quarter financial results after the markets closed on Tuesday. The company had $3.32 in earnings per share (EPS) on $8.51 billion in revenue, versus Thomson Reuters consensus estimates that called for $3.00 in EPS on $8.13 billion in revenue. The same period from the previous year had $2.43 in EPS on $7.31 billion in revenue.

In the fourth quarter of 2015, product sales in the United States were $4.8 billion, compared to $5.5 billion in the fourth quarter of 2014. In Europe, product sales were $1.7 billion, compared to $1.4 billion a year ago. Sales in other international locations increased to $1.9 billion, compared to $373 million.

Total Harvoni sales totaled $3.35 billion in the fourth quarter, compared to $2.11 billion last year. Sovaldi sales totaled $1.55 billion this year, which came down from $1.73 billion.

As for full-year 2016 guidance, Gilead expects to have net product sales in the range of $30 billion to $31 billion, compared to the consensus estimate of $31.68 billion in revenue.
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The board of directors authorized an increase of $0.04 (10%) in the company’s quarterly dividend which will take effect in the second quarter of 2016. Also the board approved the repurchase of an additional $12 billion of common stock which will commence upon the completion of the $15 billion repurchase plan authorized in January 2015.

John C. Martin, PhD, chairman and chief executive officer of Gilead, commented:

Today’s announcement reflects confidence in the company’s long term cash flows and our commitment to use our cash to invest for future growth and deliver shareholder return.

On the books, cash, equivalents and marketable securities totaled $26.2 billion at the end of the fourth quarter, compared to $11.7 billion last year. The company generated $20.3 billion in operating cash flow.

Shares of Gilead closed Tuesday down 1.6% at $82.71, with a consensus analyst price target of $123.24 and a 52-week trading range of $81.89 to $123.37. Following the release of the earnings report, shares were up 2.4% at $84.70 in the after-hours trading session.