Gilead Sciences, Inc. Earnings Cheat Sheet: Margins Suffer for Five Quarters Straight, but Net Income Climbs

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

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Gilead Sciences Earnings Cheat Sheet for the Second Quarter

Results: Net income for the biotechnology company rose to $746.2 million (93 cents per share) vs. $712.1 million (79 cents per share) in the same quarter a year earlier. This marks a rise of 4.8% from the year earlier quarter.

Revenue: Rose 10.9% to $2.14 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: GILD reported adjusted net income of $1 per share. By that measure, the company beat the mean estimate of 96 cents per share. It beat the average revenue estimate of $2.07 billion.

Key Stats:

Last quarter marked the fifth straight quarter that the company saw shrinking gross margins as gross margin fell 1.3 percentage points to 75% from the year earlier quarter. Over that time, margins have contracted on average 1.7 percentage points per quarter on a year-over-year basis.

A year-over-year revenue increase last quarter snaps a streak of two consecutive quarters of revenue declines. Revenue fell 7.7% in the first quarter and fell 1.7% in the fourth quarter of the last fiscal year.

Last quarter’s profit increase breaks a streak of two consecutive quarters of year-over-year profit decreases. In the first quarter, net income fell 23.8% while the figure dropped in the fourth quarter of the last fiscal year.

The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of 82 cents versus a mean estimate of net income of 92 cents per share.

Competitors to Watch: Roche Holding Ltd. (RHHBY), GlaxoSmithKline plc (NYSE:GSK), Pfizer Inc. (NYSE:PFE), Merck & Co., Inc. (NYSE:MRK), Johnson & Johnson (NYSE:JNJ), Bristol Myers Squibb Co. (NYSE:BMY), Idenix Pharmaceuticals, Inc. (NASDAQ:IDIX), Trimeris, Inc. (NASDAQ:TRMS), BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX), and Hemispherx BioPharma, Inc (AMEX:HEB).

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(Source: Xignite Financials)