Gilead(US:GILD) ZACKSยท2025-02-12 14:31Core Insights - Gilead Sciences, Inc. reported better-than-expected fourth-quarter results with adjusted EPS of $1.90, surpassing the Zacks Consensus Estimate of $1.67 and showing an increase from $1.72 in the same quarter last year [1][2] - Total revenues reached $7.6 billion, exceeding the Zacks Consensus Estimate of $7.1 billion and reflecting a 6% year-over-year increase driven by higher sales in HIV, oncology, and liver disease drugs [2][4] - The company provided an optimistic guidance for 2025, projecting product sales between $28.2 billion and $28.6 billion and adjusted EPS in the range of $7.70-$8.10 [15] Financial Performance - Total product sales rose 7% year-over-year to $7.5 billion, with HIV product sales growing 16% to $5.5 billion, driven by increased demand and favorable pricing [4][5] - Biktarvy, the flagship HIV therapy, saw sales increase by 21% year-over-year to $3.8 billion, capturing over 50% of the U.S. treatment market [5] - Descovy sales also increased by 21% year-over-year to $616 million, maintaining over 40% U.S. market share in pre-exposure prophylaxis [6] Cost Analysis - Adjusted product gross margin improved to 86.7% from 86.1% in the previous year, attributed to product mix [12] - Research and development expenses rose to $1.6 billion from $1.5 billion due to increased investments and clinical activities [12] - SG&A expenses increased by 16% to $1.9 billion, driven by litigation accrual and higher sales and marketing spending [13] 2024 Results - Revenues for 2024 increased by 6% to $28.8 billion, surpassing the Zacks Consensus Estimate of $28.2 billion [14] - EPS for 2024 was reported at $4.62, down 31% from $6.72 in 2023 due to higher acquired IPR&D expenses and increased income tax expenses [14] 2025 Guidance - Gilead expects total product sales, excluding Veklury, to be between $26.8 billion and $27.2 billion, with total Veklury sales estimated at $1.4 billion [15] - The Zacks Consensus Estimate for total product sales is pegged at $28.3 billion [15] Pipeline Updates - The FDA granted Breakthrough Therapy Designation to Trodelvy for treating extensive-stage small cell lung cancer [16] - Gilead submitted applications for lenacapavir for HIV prevention, which could enhance its HIV franchise [17] Dividend Announcement - Gilead announced a 2.6% increase in its quarterly cash dividend, resulting in a quarterly dividend of $0.79 per share starting in the first quarter of 2025 [18] Market Performance - Gilead's shares surged 34.8% over the past year, contrasting with an 11.7% decline in the industry [3]