Gilead Squashes Expectations On The Back Of A Bullish Move For Its Cancer Drugs

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Gilead Sciences (GILD) crushed Wall Street’s sales forecasts Tuesday on the back of another quarter of double-digit growth for its cancer treatments. However, GILD stock was muted following the report.


Oncology sales surged 33% to $769 million, well above expectations for $718 million, according to FactSet. The best growth came from breast and bladder cancer treatment, Trodelvy. Trodelvy sales skyrocketed more than 57% to $283 million.

“Gilead has now delivered two years of consistent growth in our base business,” Chief Executive Daniel O’Day said in a statement. “In this third quarter, continued growth was driven by both virology and oncology.”

Shares have pulled back recently, but GILD stock remains above its 50-day and 200-day lines, according to In after-hours trading on today’s stock market, Gilead shares dipped a fraction near 80.50.

GILD Stock: Huge Earnings Beat

Overall, third-quarter sales were flat year over year at $7.05 billion. But that smashed forecasts for $6.33 billion. Adjusted earnings came in at $2.29 per share. Earnings advanced 20.5% and walloped GILD stock analysts’ expectations for $1.79.

Excluding the impact of Covid treatment, Veklury, Gilead’s product sales climbed 5%.

Beyond cancer drugs, sales of treatments for hepatitis collectively tumbled 10% to $706 million. Meanwhile, Veklury brought in $636 million in sales, diving 31%. GILD stock analysts forecasts just $301 million in sales of Veklury.

On a bright note, revenue from HIV treatments inched up 4% to $4.67 billion, led by Biktarvy. Biktarvy generated two-thirds of HIV treatment sales and grew 11.5% to $3.09 billion. Analysts following GILD stock expected just $2.86 billion in sales from Biktarvy.

Guidance Boosted

Gilead raised its outlook for the year and now expects $26.7 billion to $26.9 billion in product sales, which exclude licensing and other sources of revenue. Gilead also expects Veklury to generate $1.9 billion in sales, up from the guidance it issued three months ago for $1.7 billion.

Further, the company expects to earn $6.65 to $6.85 per share, on an adjusted basis.

GILD stock analysts forecasted $25.03 billion in total revenue and $24.81 billion in product sales. They expected Veklury to bring in $1.57 billion in sales. The Street also forecasts adjusted profit of $6.17 per share.

Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.


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