Gilead Sciences (GILD) exceeded Wall Street’s sales expectations on Tuesday with another quarter of double-digit growth for its cancer treatments. Despite this, GILD stock experienced minimal movement following the report.
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Oncology sales surged 33% to $769 million, well above expectations for $718 million, according to FactSet. The highest growth came from breast and bladder cancer treatment, Trodelvy, with sales skyrocketing over 57% to $283 million.
“Gilead has now delivered two years of consistent growth in our base business,” stated Chief Executive Daniel O’Day. “In this third quarter, continued growth was driven by both virology and oncology.”
Although shares have recently declined, GILD stock remains above its 50-day and 200-day lines, according to MarketSmith.com. In after-hours trading on today’s stock market, Gilead shares dipped slightly to around 80.50.
GILD Stock: Huge Earnings Beat
Overall, third-quarter sales were steady year over year at $7.05 billion, significantly surpassing forecasts for $6.33 billion. Adjusted earnings came in at $2.29 per share, increasing 20.5% and exceeding 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 recorded $636 million in sales, a 31% drop. GILD stock analysts had forecasted only $301 million in Veklury sales.
On a positive note, revenue from HIV treatments increased 4% to $4.67 billion, led by Biktarvy, which generated two-thirds of HIV treatment sales and grew 11.5% to $3.09 billion. Analysts following GILD stock had anticipated only $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 forecasts Veklury to generate $1.9 billion in sales, up from the guidance issued three months ago for $1.7 billion.
Additionally, the company anticipates earning $6.65 to $6.85 per share, on an adjusted basis.
GILD stock analysts projected $25.03 billion in total revenue and $24.81 billion in product sales. They also expected Veklury to bring in $1.57 billion in sales. The Street also forecasted 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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