Gilead Sciences Inc (NASDAQ:GILD) on Thursday reported adjusted earnings of $2.47 per share, beating the consensus of $2.13.GILD is in positive territory. Get the complete picture hereThe U.S. drug maker reported revenues of $7.77 billion, beating the consensus of $7.45 billion.Product sales decreased 2% to $7.3 billion, primarily driven by lower Veklury (remdesivir) and Cell Therapy sales, partially offset by higher HIV and Livdelzi (seladelpar) sales."With multiple potential product launches in 2026, the ...

Core Viewpoint - Gilead Sciences, Inc. reported lower-than-expected first-quarter 2025 results, with adjusted earnings per share (EPS) of $1.81 and total revenues of $6.7 billion, both missing consensus estimates [1][2] Group 1: Financial Performance - Adjusted EPS of $1.81 missed the Zacks Consensus Estimate by a penny, while the previous year reported a loss per share of $1.32 [1] - Total revenues of $6.7 billion were flat year over year and missed the Zacks Consensus Estimate of $6.8 billion [1] - Key drugs Biktarvy and Trodelvy missed sales expectations, leading to a decline in stock price post-announcement [2] Group 2: HIV Portfolio Strength - Gilead's HIV product sales contributed $4.6 billion in the first quarter, with Biktarvy sales increasing 7% year over year to $3.15 billion despite missing estimates [4] - Biktarvy holds over 51% market share in the U.S. treatment market, indicating strong momentum [5] - The pipeline candidate lenacapavir showed 100% efficacy for HIV prevention in women, with FDA priority review expected by June 19, 2025 [6][7] Group 3: Liver Disease Portfolio - FDA approval of seladelpar for primary biliary cholangitis (PBC) strengthens Gilead's liver disease portfolio, with initial uptake being encouraging [8] Group 4: Oncology Business Challenges - Gilead's oncology portfolio faces competitive pressures, particularly in the Cell Therapy franchise and breast cancer drug Trodelvy, which saw lower-than-expected sales [10] - Potential launches of anito-cel and Trodelvy in 2026 may bolster the oncology business [11] Group 5: Stock Performance and Valuation - Gilead's shares have gained 13.6% year to date, outperforming the industry and S&P 500 [12] - The stock trades at a price/earnings ratio of 12.80x forward earnings, lower than the large-cap pharma industry's average of 15.77x [15] - The bottom-line estimate for 2025 has slightly decreased to $7.91, while the estimate for 2026 has increased to $8.69 [16] Group 6: Strategic Outlook - Gilead's continuous innovation in the HIV portfolio and strategic acquisitions are seen as positive for long-term growth [19][20] - The company maintains a strong cash position of $7.9 billion as of March 31, 2025, supporting a sustainable dividend yield of 2.97% [21]

Core Viewpoint - Gilead Sciences, Inc. reported disappointing first-quarter 2025 results, with adjusted earnings per share (EPS) of $1.81 and total revenues of $6.7 billion, both missing consensus estimates [1][2][3] Financial Performance - Adjusted EPS of $1.81 missed the Zacks Consensus Estimate by a penny, compared to a loss per share of $1.32 in the same quarter last year [1] - Total revenues of $6.7 billion were flat year over year and missed the Zacks Consensus Estimate of $6.8 billion [1] - Total product sales decreased 1% year over year to $6.6 billion, while excluding Veklury, product sales increased 4% to $6.3 billion [3] Product Sales Breakdown - HIV product sales grew 6% year over year to $4.6 billion, exceeding both the Zacks Consensus Estimate and model estimate of $4.5 billion [3] - Biktarvy sales increased 7% year over year to $3.15 billion but missed the Zacks Consensus Estimate of $3.2 billion [4] - Descovy sales surged 38% year over year to $586 million, beating the Zacks Consensus Estimate of $479 million [5] - Liver Disease portfolio sales rose 3% to $758 million, driven by higher demand for HBV and HDV drugs [6] - Veklury sales plummeted 45% to $302 million, missing the Zacks Consensus Estimate of $387 million [7] - Cell Therapy product sales decreased 3% to $464 million, missing the Zacks Consensus Estimate of $491 million [7] Cost and Margin Analysis - Adjusted product gross margin slightly increased to 85.5% from 85.4% in the year-ago quarter [11] - Research and development expenses totaled $1.3 billion, down from $1.4 billion in the previous year [11] - SG&A expenses amounted to $1.2 billion, down from $1.3 billion [11] Dividend and Guidance - Gilead declared a quarterly dividend of $0.79 per share for Q2 2025, payable on June 27, 2025 [12] - The company reiterated its 2025 guidance, projecting product sales between $28.2 billion and $28.6 billion, with adjusted EPS anticipated in the range of $7.70-$8.10 [13] Pipeline Updates - The FDA accepted new drug application submissions for lenacapavir for HIV prevention, with a target action date of June 19, 2025 [14] - Gilead received conditional marketing authorization for seladelpar for the treatment of primary biliary cholangitis [14] Overall Performance Assessment - Gilead's first-quarter results were disappointing, particularly due to a decline in oncology drugs affecting revenue growth [15] - Despite challenges, Biktarvy maintained its dominant position in the HIV market, and Descovy showed strong performance [15] - The potential approval of lenacapavir could further strengthen Gilead's HIV franchise amid increasing competition [16]