Gilead Sciences Inc., a leading drug company based in Foster City, California, experienced a 2% decline in its stock (GILD, -0.20%) during after-hours trade on Thursday. This came after the company posted its second-quarter profit, which fell below expectations, and revised its guidance for the future. Despite revenue growth driven by increased sales in HIV and oncology, Gilead faced a decline in sales of its COVID treatment Veklury (remdesivir).
For the quarter, Gilead reported a net income of $1.045 billion, or 83 cents a share, compared to $1.144 billion, or 91 cents a share, in the same period last year. Adjusted earnings per share stood at $1.34, significantly below the FactSet consensus of $1.64. However, revenue showed an improvement, reaching $6.564 billion compared to $6.138 billion in the previous year. This surpasses the FactSet consensus of $6.454 billion.
Guidance and Outlook
In light of the current circumstances, Gilead revised its full-year product sales guidance from the previous range of $26.0 billion to $26.5 billion to a new range of $26.3 billion to $26.7 billion. Similarly, Veklury sales are now projected to be around $1.7 billion, down from the previous estimate of approximately $2.0 billion. Adjusted earnings per share are expected to range between $6.45 and $6.80, compared to the previous guidance of $6.60 to $7.00.
Year-to-date, Gilead’s stock has experienced a decline of 12%, while the S&P 500 has seen a 17% gain.