Gilead Sciences Climbs On Positive Earnings

Gilead Sciences, Inc. (NASDAQ: GILD)

As expected, Gilead Sciences reported their earnings for the second quarter after the closing bell on Tuesday; and as I predicted earlier this week, the report was overwhelmingly positive. Today, we’ll take a look at Gilead’s earnings for the second quarter, how investors reacted, and what we can expect to see from the company moving forward. So, let’s get right to it…

GILD’s Earnings Smash Expectations

Tuesday, after the closing bell, Gilead Sciences released an earnings report that upheld its reputation as a company that’s known for smashing expectations. Here’s what we saw from the report…

  • Top Line Revenue – Top line revenue for the quarter came in at $8.24 billion; outpacing analyst expectations by $640 million!
  • Net Income – When it comes to net earnings, Gilead Sciences produced $4.49 billion in the quarter which equates to $3.15 per share. That also smashed analysts expectations which averaged around $2.71 per share.
  • Guidance – The company also made an update to full year guidance; expecting sales to come in between $29 billion and $30 billion; up $1 billion from previously released expectations.

As you can see from the data above, despite AbbVie’s involvement in the hepatitis C treatment space, Gilead Sciences did incredibly well in the quarter.

How The Market Reacted To The News

As we’ve come to expect any time a company releases positive earnings results, there was a positive reaction in the market to GILD’s earnings. Currently (11:38), Gilead Sciences is trading at $117.53 per share after a gain of 3.94% so far today.

What We Can Expect To See Moving Forward

Moving forward, I’m expecting to see overwhelmingly positive news from Gilead Sciences. While investors may have been concerned about competition in the hepatitis C space in the past, I think GILD has proven that it will continue to hold the dominant position there. It’s also important to remember that Gilead Sciences recently received regulatory approval for the treatment of hepatitis C in Japan; a massive market in and of itself. With strong products and a strong team that’s always working to expand the horizons for the company, it only makes sense that we would see more growth.

What Do You Think?

Where do you think GILD is headed and why? Let us know in the comments below!

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