Why Gilead Sciences Stock Is Jumping Today

Financial Performance - Gilead reported fourth-quarter revenue of $7.6 billion, reflecting a 6$1.42 based on GAAP, marking a year-over-year increase of approximately 25% [2] - Non-GAAP (adjusted) EPS rose roughly 10.5% year over year to $1.90, exceeding the consensus Wall Street estimate of$1.70 per share [2] Future Outlook - Gilead provided optimistic full-year 2025 guidance, projecting non-GAAP diluted EPS between $7.70 and$8.10, compared to $4.62 for full-year 2024 [3] - The company faced challenges in the previous year due to the acquisition of CymaBay and higher income tax expenses impacting earnings [3] Product Development - Gilead is advancing a twice-yearly version of Sunlenca (lenacapavir) and has completed regulatory filings in the U.S. and Europe for the HIV drug [4] - Lenacapavir was recognized as "Breakthrough of the Year" for 2024 by Science magazine [4] Investment Considerations - Gilead's stock may not appeal to growth investors due to expected slight revenue decline, despite anticipated earnings growth [5] - The company announced a dividend increase of 2.6%, resulting in a forward dividend yield of nearly 3% [5] - Gilead's shares are trading at an attractive valuation of 12.8 times forward earnings, which may appeal to income and value investors [5]