NASDAQ$GILD

Gilead Sciences Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Gilead Sciences announced its Q4 2020 financial results, with product sales increasing primarily due to Veklury.

Gilead Sciences reported a 26% increase in total revenues for Q4 2020, primarily driven by Veklury sales. Non-GAAP diluted EPS increased by 99%, while diluted EPS decreased by 42%. The company provided full year 2021 guidance, including product sales and non-GAAP diluted EPS.

  • Product sales increased 26% year-over-year to $7.3 billion, primarily due to Veklury.
  • Diluted EPS was $1.23, a decrease of 42% year-over-year.
  • Non-GAAP diluted EPS was $2.19, an increase of 99% year-over-year.
  • Veklury sales contributed $1.9 billion to product sales.

Headline financials

Total Revenue

$7.42B

Previous: $5.88B+26.2%
EPS (adj)

$2.19

Previous: $1.30+68.5%
Product Gross Margin

80.9%

Previous: 71.0%+13.9%
Effective Tax Rate

14.9%

No prior period
Capital Expenditures

$181M

Previous: $203M-10.8%
Free Cash Flow

$1.74B

Previous: $2.38B-27.0%
Net Income

$1.54B

Previous: $2.7B-42.8%
Operating Income

$2.65B

Previous: $1.09B+142.5%
Gross Profit

$6.02B

Previous: $4.2B+43.5%
Cash & Equivalents

$7.91B

Previous: $11.6B-32.0%
Total Assets

$68.4B

Previous: $61.6B+11.0%
Stock-Based Comp

$161M

Previous: $157M+2.5%

Revenue & EPS history

Gilead Sciences · Revenue · Quarterly

$7.42B

Q4 2020+26.2%vs Q4 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

Gilead provided full year 2021 guidance for product sales, product gross margin, R&D and SG&A expenses, operating income, effective tax rate, and diluted EPS.

Tailwinds

  • Product sales excluding Veklury sales are projected to be $21.7 billion to $22.1 billion.
  • Veklury sales are projected to be $2.0 billion to $3.0 billion.
  • Non-GAAP product gross margin is projected to be 87% to 88%.
  • Non-GAAP R&D and SG&A expenses are expected to remain flat to low single-digit percentage decline.
  • Non-GAAP diluted EPS is projected to be $6.75 to $7.45.

Headwinds

  • Veklury sales are subject to significant volatility and uncertainty due to the dynamic global health environment.
  • The financial guidance excludes the effects of any potential future strategic acquisitions, collaborations and investments.
  • The guidance is subject to a number of risks and uncertainties.
  • The COVID-19 pandemic continues to impact Gilead’s business and broader market dynamics, including HCV and HIV market volume.
  • Truvada and Atripla sales are expected to continue to decline as multiple generics are expected to enter the market.

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 Q4 2020

Historical avgQ4 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%

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