Gilead Sciences Earnings: Beats Estimates on Double-Digit Revenue Growth

S&P 500 (NYSE:SPY) component Gilead Sciences Inc. (NASDAQ:GILD) reported its results for the third quarter. Gilead Sciences is a biopharmaceutical company which discovers, develops and commercializes therapies for viral diseases, infectious diseases and cancer.

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Gilead Sciences Inc. Earnings Cheat Sheet

Results: Net income for Gilead Sciences Inc. fell to $675.5 million (85 cents per share) vs. $741.1 million (95 cents per share) a year earlier. This is a decline of 8.9% from the year-earlier quarter.

Revenue: Rose 14.4% to $2.43 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Gilead Sciences Inc. reported adjusted net income of $1 per share. By that measure, the company beat the mean estimate of 90 cents per share. It beat the average revenue estimate of $2.29 billion.

Key Stats:

Revenue has increased for four quarters in a row. Revenue increased 12.5% to $2.41 billion in the second quarter. The figure rose 18.5% in the first quarter from the year earlier and climbed 10.1% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company’s net income has now fallen for three straight quarters. In the second quarter, net income fell 4.6% from the year earlier, while the figure fell 32.1% in the first quarter.

The company has beaten estiamtes for two quarters in a row. In the second quarter, it topped expectations with net income of 94 cents versus a mean estimate of net income of 92 cents per share.

Margins rose in the second quarter after falling the quarter before. Gross margins grew to 75.4%, up 0.5 percentage point from the year-earlier quarter. In the first quarter, the figure rose 0.7 percentage point to 74.3% from the year earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 92 cents a share to 90 cents over the last ninety days. For the fiscal year, the average estimate has moved down from $3.44 a share to $3.41 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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