NASDAQ$GILD

Gilead Sciences Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Gilead's performance in Q1 2020 demonstrated continued progress and highlighted the strength of its underlying business.

Gilead Sciences reported total revenues of $5.5 billion, a 5% increase compared to Q1 2019. Diluted EPS was $1.22, while non-GAAP diluted EPS was $1.68. The company is focused on remdesivir and its ongoing commitments to existing medicines.

  • Total revenues increased by 5% compared to the same period in 2019, reaching $5.5 billion.
  • Net income decreased by 21% to $1.6 billion, with diluted EPS at $1.22.
  • Non-GAAP net income was $2.1 billion, with non-GAAP diluted EPS at $1.68.
  • Product sales benefited from an estimated $200 million in revenue due to increased customer buying patterns related to the COVID-19 pandemic.

Headline financials

Total Revenue

$5.55B

Previous: $5.28B+5.1%
EPS (adj)

$1.68

Previous: $1.76-4.5%
Product Gross Margin

82.3%

Previous: 81.6%+0.9%
Effective Tax Rate

23.2%

Previous: 16.3%+42.3%
Capital Expenditures

-$171M

Previous: -$237M+27.8%
Free Cash Flow

$1.38B

Previous: $1.74B-20.6%
Net Income

$1.55B

Previous: $1.98B-21.5%
Operating Income

$2.4B

Previous: $2.24B+7.4%
Gross Profit

$4.58B

Previous: $4.32B+5.9%
Cash & Equivalents

$24.3B

Previous: $16.9B+43.6%
Total Assets

$59.7B

Previous: $62.8B-4.9%
Stock-Based Comp

$141M

Previous: $143M-1.4%

Revenue & EPS history

Gilead Sciences · Revenue · Quarterly

$5.55B

Q1 2020+5.1%vs Q1 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Gilead Sciences · $6.14B total across 3 segments · Q3 2023

  • HIV
    $4.67B+4.0%
  • Oncology
    $769M+327.2%
  • Liver Disease
    $706M

Forward guidance

There is significant uncertainty about the progression and ultimate impact of the pandemic on Gilead’s business and operations. Gilead anticipates that COVID-19 could impact its business in the short-term due to factors such as fewer patients accessing treatment for conditions such as HIV and HCV, however, the impact of these developments is uncertain. The total investments in remdesivir, primarily to expand manufacturing production, throughout 2020 could be material.

Tailwinds

  • Remdesivir was found to shorten the time to recovery for hospitalized patients with COVID-19 when compared with a placebo.
  • The study demonstrated similar clinical improvements in patients with severe symptoms of COVID-19, regardless of whether they received five or ten days of treatment.
  • More than 140,000 treatment courses of remdesivir will be manufactured by the end of May 2020.
  • More than one million treatment courses will be manufactured by December 2020, with plans to be able to produce several million treatment courses in 2021.
  • Gilead will focus on making remdesivir both accessible and affordable to governments and patients around the world.

Headwinds

  • COVID-19 could impact its business in the short-term due to factors such as fewer patients accessing treatment for conditions such as HIV and HCV
  • The impact of these developments is uncertain.
  • The total investments in remdesivir, primarily to expand manufacturing production, throughout 2020 could be material.
  • The amount, timing and accounting for the investments as well as the potential to recoup Gilead’s at-risk investments at some point in the future are dependent on clinical trial and regulatory outcomes.
  • There is significant uncertainty about the progression and ultimate impact of the pandemic on Gilead’s business and operations.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.2%

Avg return

Earnings day

-0.2%

Avg return

5 days after

-0.4%

Avg return

30 days after

44%

32 / 73 earnings

Positive

+11.9%

Q3 2022

Best reaction

-12.4%

Q1 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.5%-1.5%-3.4%
Q4 2025+5.8%+5.3%-1.5%
Q3 2025+3.1%+3.5%+6.2%
Q2 2025+8.3%+8.9%+4.3%
Q1 2025-2.8%+0.4%+1.1%
Q4 2024+7.5%+8.3%+15.9%
Q3 2024+8.5%+7.5%+2.1%
Q2 2024-0.5%-0.0%+6.4%
Q1 2024-2.5%-2.8%-2.1%
Q4 2023-3.0%-4.0%-4.0%
Q3 2023-4.0%-6.4%-3.8%
Q2 2023+4.0%+5.8%+1.3%
Q1 2023-1.8%-3.9%-7.9%
Q4 2022+0.6%+2.4%-3.5%
Q3 2022+11.9%+12.0%+21.8%
Q2 2022+4.5%+2.5%+9.0%
Q1 2022-3.7%-2.0%+5.2%
Q4 2021-4.2%-7.0%-10.1%
Q3 2021-2.8%-1.3%+5.2%
Q2 2021-2.5%-0.3%+1.7%
Q1 2021-1.5%+1.9%+2.6%
Q4 2020+6.1%+4.3%+0.2%
Q3 2020-2.5%-2.5%+0.0%
Q2 2020-4.8%-2.9%-10.6%
Q1 2020-3.8%-4.8%-6.4%
Q4 2019-0.7%+3.8%+14.7%
Q3 2019-4.9%-4.7%-2.0%
Q2 2019-3.5%-4.3%-6.1%
Q1 2019+3.5%+2.4%-4.0%
Q4 2018-3.4%-3.7%-10.2%
Q3 2018+2.5%+5.9%-2.1%
Q2 2018+0.7%-1.7%-5.2%
Q1 2018-7.4%-9.4%-6.7%
Q4 2017+5.6%+1.2%+2.2%
Q3 2017-3.5%-6.2%-9.3%
Q2 2017+1.7%+3.2%+0.1%
Q1 2017-1.3%-0.5%-5.1%
Q4 2016-7.7%-8.3%-5.5%
Q3 2016-1.5%-1.6%-1.1%
Q2 2016-6.4%-8.2%-7.0%
Q1 2016-12.4%
Q4 2015+2.8%
Q3 2015-0.5%
Q2 2015+4.7%
Q1 2015+2.6%
Q4 2014-7.3%
Q3 2014-1.7%
Q2 2014+1.4%
Q1 2014+3.2%
Q4 2013-0.9%
Q3 2013+5.7%
Q2 2013+4.5%
Q1 2013+10.0%
Q4 2012-0.0%
Q3 2012+3.0%
Q2 2012+8.4%
Q1 2012-0.8%
Q4 2011+1.6%
Q3 2011+0.4%
Q2 2011-1.6%
Q1 2011+0.4%
Q4 2010-1.1%
Q3 2010-1.2%
Q2 2010-0.1%
Q1 2009+2.3%
Q1 2010+0.0%
Q4 2007-0.2%
Q4 2009-0.2%
Q3 2009+5.4%
Q3 2008+5.4%
Q4 2008-5.0%
Q2 2008-5.0%
Q2 2009-5.0%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro