NASDAQ$GILD

Gilead Sciences Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Gilead Sciences' financial performance remained stable with growth in oncology and HIV sales offsetting declines in Veklury and HCV product sales.

Gilead Sciences reported flat total revenue of $7.1 billion for Q3 2023 compared to the same period in 2022. Growth in Oncology and HIV sales was offset by lower Veklury and chronic hepatitis C virus (HCV) product sales. Diluted EPS increased to $1.73, and non-GAAP diluted EPS increased to $2.29.

  • Total revenue was flat at $7.1 billion compared to Q3 2022.
  • Product sales excluding Veklury increased by 5% year-over-year to $6.4 billion.
  • Oncology sales increased by 33% year-over-year to $769 million.
  • Diluted EPS increased to $1.73, and non-GAAP diluted EPS increased to $2.29.

Headline financials

Total Revenue

$7.05B

Previous: $7.04B+0.1%
EPS (adj)

$2.29

Previous: $1.90+20.5%
Product Gross Margin

77.6%

Previous: 80.0%-3.0%
Effective Tax Rate

6.3%

Previous: 26.6%-76.3%
Capital Expenditures

-$370M

Previous: -$547M+32.4%
Free Cash Flow

$1.81B

Previous: $1.24B+45.7%
Net Income

$2.18B

Previous: $1.79B+21.9%
Operating Income

$2.62B

Previous: $2.84B-7.5%
Gross Profit

$5.49B

Previous: $5.65B-2.9%
Cash & Equivalents

$8B

Previous: $4.7B+70.2%
Total Assets

$62.4B

Previous: $62.6B-0.3%
R&D Expense

$1.46B

No prior period
Stock-Based Comp

$202M

Previous: $168M+20.2%

Revenue & EPS history

Gilead Sciences · Revenue · Quarterly

$7.05B

Q3 2023+0.1%vs Q3 2022
Beat estimate in 12 of 15 quarters(80%)
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

For the full year, Gilead expects total product sales between $26.7 billion and $26.9 billion, diluted earnings per share between $4.55 and $4.75, and non-GAAP diluted earnings per share between $6.65 and $6.85.

Tailwinds

  • Total product sales are expected to be between $26.7 billion and $26.9 billion, compared to the previous guidance of $26.3 billion and $26.7 billion.
  • Total product sales, excluding Veklury, are expected to be between $24.8 billion and $25.0 billion, compared to the previous guidance of $24.6 billion and $25.0 billion.
  • Total Veklury sales are expected to be approximately $1.9 billion, compared to the previous guidance of approximately $1.7 billion.
  • Diluted earnings per share are expected to be between $4.55 and $4.75, compared to the previous guidance of $4.50 and $4.85.
  • Non-GAAP diluted earnings per share are expected to be between $6.65 and $6.85, compared to the previous guidance of $6.45 and $6.80.

Headwinds

  • Uncertainty around the duration and magnitude of the COVID-19 pandemic.
  • Gilead's ability to make progress on any of its long-term ambitions or strategic priorities laid out in its corporate strategy.
  • Gilead's ability to accelerate or sustain revenues for its virology, oncology and other programs.
  • Gilead’s ability to realize the potential benefits of acquisitions, collaborations or licensing arrangements, including the arrangements with Arcus, Arcellx, Assembly, Epic Bio, and Tentarix
  • Patent protection and estimated loss of exclusivity for our products and product candidates.

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 Q3 2023

Historical avgQ3 2023

+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%

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