VALID Stock: Sales Crush Forecasts As Covid Drug Adds $ 1.5 Billion
Gilead Sciences (GILD) delivered a big quarterly beat Thursday almost entirely on the back of its Covid treatment, Veklury, but GILD stock slipped.
Veklury generated $ 1.5 billion in first-quarter sales, beating expectations by $ 400 million, Mizuho Securities analyst Salim Syed said in a report to clients.
In another note, RBC Capital Markets analyst Brian Abrahams noted strength from Gilead’s core drugs.
“A strong quarter for Gilead, with Veklury once again handily beating consensus, oncology business continuing to show encouraging growth and a stable HIV and (hepatitis C) business, all continuing to support a fundamental floor value likely higher than where the stock currently trades, “Abrahams said.
But in after-hours action on today’s stock marketGILD stock fell 0.3% near 61.40.
VALID Stock: HIV, Oncology Drugs Key
During the quarter, Gilead adjusted earnings inched 4% ahead to $ 2.12 per share. That topped the average estimate of GILD stock analysts polled by FactSet for $ 1.80 per share. Revenue climbed 3% to $ 6.59 billion, above expectations for $ 6.29 billion.
Excluding the impact of Veklury, revenue increased 2% to $ 5 billion. Gilead noted strength from its leading HIV treatment, Biktarvy. Biktarvy sales popped 18%. But sales of other HIV drugs Descovy and Truvada declined due to channel dynamics and loss of exclusivity in the US, respectively.
Overall hepatitis B treatment sales grew 7% to $ 235 million while hepatitis C treatment sales fell 22% to $ 399 million. Gilead’s drugs essentially cure hepatitis C, so sales have sloughed off.
Sales of cell therapies for cancer surged a collective 43% to $ 274 million. Gilead has called out its cancer drugs as a key area for future growth. The segment also includes an acquired cancer med called Trodelvy. Sales of Trodelvy ratcheted 103% higher to $ 146 million.
For the year, Gilead predicts earnings of $ 6.20- $ 6.70 per share and $ 23.8 billion to $ 24.3 billion in product sales – which does not include royalty, contract or other revenues. The earnings guidance missed GILD stock analysts’ call by a penny, at the midpoint. Analysts also expected $ 24.5 billion in total revenue.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
YOU MAY ALSO LIKE:
IBD Stock Of The Day Merck Notches Quarterly Beat As Covid Pill Brings In $ 3.2 Billion
Eli Lilly Extends Its Breakout On First-Quarter Beat, Bullish News In Obesity
IBD Stock Of The Day: See How To Find, Track And Buy The Best Stocks
Watch IBD’s Investing Strategies Show For Actionable Market Insights
IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today
Gilead Sciences (GILD) delivered a big quarterly beat Thursday almost entirely on the back of its Covid treatment, Veklury, but GILD stock slipped. X Veklury generated $ 1.5 billion in first-quarter sales, beating expectations by $ 400 million, Mizuho Securities analyst Salim Syed said in a report to clients. In another note, RBC Capital Markets…