Gilead Sciences Earnings: TOPS Revenue Estimate

Rising costs hurt S&P 500 (NYSE:SPY) component Gilead Sciences Inc. (NASDAQ:GILD) in the second quarter as profit dropped from a year earlier. 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 $711.6 million (91 cents per share) vs. $746.2 million (93 cents per share) a year earlier. This is a decline of 4.6% from the year-earlier quarter.

Revenue: Rose 12.5% to $2.41 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Gilead Sciences Inc. fell short of the mean analyst estimate of 92 cents per share. It beat the average revenue estimate of $2.29 billion.

Key Stats:

Last quarter was the fifth in a row that the company saw shrinking gross margins, as they fell 0.7 percentage point from the year-earlier quarter to 74.3%. In that span, margins have contracted an average of one percentage points per quarter on a year-over-year basis.

Revenue has risen the past four quarters. Revenue increased 18.5% to $2.28 billion in the first quarter. The figure rose 10.1% in the fourth quarter of the last fiscal year from the year earlier and climbed 9.5% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now seen net income fall in each of the last two quarters. In the first quarter, net income fell 32.1% from the year-earlier quarter.

The company has now fallen short of analyst estimates for the last three quarters. It missed the mark by 31 cents in the first quarter and by 8 cents in the fourth quarter of the last fiscal year.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from 91 cents a share to 90 cents over the last seven days. The average estimate for the fiscal year is $3.44 per share, down from $3.67 ninety days ago.

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

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