Gilead Sciences Posts Q2 Loss, Lifts FY Outlook
Gilead Sciences, Inc. (GILD) Wednesday posted a loss for the second quarter, hurt largely by a charge related to acquisition of Forty Seven. Moving ahead, the company lifted its financial outlook for the full year 2020.
Second-quarter net loss was $3.34 billion or $2.66 per share, compared to a net income of $1.88 billion or $1.47 per share last year. Loss for the second quarter included an acquired in-process research and development charge of $4.5 billion related to Gilead’s acquisition of Forty Seven, Inc.
On an adjusted basis, net income for the second quarter was $1.40 billion or $1.11 per share, down from $2.20 billion $1.72 per share last year.
Revenues for the second quarter were $5.14 billion, down from $5.69 billion last year.
Analysts polled by Thomson Reuters expected earnings of $1.45 per share on revenues of $5.31 billion.
“Gilead’s first half performance demonstrates the strength and durability of our core HIV business, even as we navigated the expected impact of the COVID-19 pandemic. We are already starting to see early signs of recovery from this impact and we are fully confident in our long-term HIV leadership,” said CEO Daniel O’Day.
HIV product sales decreased 1% to $4.0 billion for the second quarter.
“We are also making important progress with our pipeline. In addition to the critical work of advancing remdesivir, we have continued to strengthen our presence in immuno-oncology. This includes six immuno-oncology agreements this year and the recent FDA approval for TecartusTM in mantle cell lymphoma,” O’Day added.
Gilead’s remdesivir is being tested as a specific treatment for COVID-19. The drug has been authorized for emergency use in the US, India, Singapore, and approved for use in Japan and the European Union for people with severe symptoms.
Looking forward to the full year 2020, the company now expects product sales of $23.00 billion to $25.00 billion, up from previous guidance of $21.80 to $22.20 billion. Gilead now expects adjusted earnings of $6.25 to $7.65 per share for the full year, up from prior estimate of $6.05 to $6.45 per share.
Analysts currently expect earnings of $6.71 per share and revenues of $23.44 billion.
GILD closed Thursday’s trading at $72.33, down $0.68 or 0.93%, on the Nasdaq. The stock further dropped $0.98 or 1.35%, in the after-hours trade.
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