Gilead Sciences (NASDAQ: $GILD) is a biotech giant that develops and sells drugs and invests in public health programs. On Tuesday, February 12, 2025, after markets closed, it released its Q4 fiscal 2024 result, which sent the stock soaring in premarket trading. Below is a deep dive into the results.
Gilead Sciences Q4 Results
Fourth quarter revenue grew 6% YoY to $7.6 billion, beating estimates of $7.15 billion. Meanwhile, non-GAAP ESP came in at $.90, beating estimates of $1.70. Revenue growth was primarily driven by higher sales of HIV drugs, as well as higher sales in Oncology and Liver Disease, partially offset by lower sales of Veklury (remdesivir).
Other Q4 Financial Highlights
In Q4, total product sales were up 7% YoY to $7.5 billion and up 13% YoY, excluding veklury to $7.2 billion. Q4 HIV sales were up 16% YoY to $5.5 billion; Liver Disease portfolio sales were up 4% YoY to $719 million; Veklury sales dipped 53% YoY to $337 million, Cell Therapy sales were up 5% YoY to $488 million, while Trodelvy® sales were up 19% YoY to $355 million.
The company ended the fourth quarter with a product gross margin of 79% compared to 70.4% the previous year. Its non-GAAP products gross margin was 86.7% compared to 86.1% the previous.
Q4 R&D expenses came in $$1.6 billion compared to $1.4 billion the previous year, while SG&A expenses came in at $1.9 billion compared to $1.6 billion the previous year.
Full Year Highlights
Full-year revenue came in at $28.8 billion, a 6% YoY increase. Total product sales in fiscal 2024 came in at $26.8 billion, an 8% YoY increase, HIV sales were up 8% YoY to $19.6 billion, Oncology sales rose 12% YoY to $3.3 billion, Trodelvy sales were up 24% YoY to $1.3 billion, Cell Therapy sales were up 6% YoY to $2 billion, while Veklury sales were down 18% YoY to $1.8 billion.
The full year’s operating income was $8.5 billion. The non-GAAP product margin came in at 86.2% for the full year compared to 86.3% in fiscal 2023. It reported a full-year non-GAAP EPS of $4.62, while SG&A expenses declined 3% for the full year to $5.9 billion. For q1 fiscal 2025, the board increased the dividend by 2.6% to $0.79 per share.
Fiscal 2025 Guidance
Gilead (GILD) forecast a non-GAAP EPS of $.70 to $8.10 for fiscal 2025, above analysts forecast of $7.60. It expects full-year revenue of $28.2 billion to $28.6 billion, which is in line with analysts’ forecasts of $28.41 billion.
Prepared Remarks Highlights
While discussing the results, CEO Daniel O’Day stated that they expected reforms to Medicare Part D to have a $1.1 billion impact on the company, with $900 million on that impact on the HIV segment. Additionally, the company is anticipating a potential rise in SG&A expenses due to litigation related to the promotional speaker program for HIV medication.
Gilead (GILD) Market Performance
Following the earnings and revenue beat in Q4, Gilead Sciences stock rose 4.46% in premarket trading to $100.60 as of 7:50 AM EST. Over the past six months, the stock has risen 30.52%, while in the past 12 months, it is up 30.50%.
It has outperformed the S&P 500, which is up 13.55% in the past six months and 20.73% in the past year. The stock is above both its 50- and 200-day moving averages of $93.22 and $80.74, respectively.
Analysts remain optimistic regarding the future of GILD, giving it a moderate buy rating. They forecast an average price of $105.06, which is a 9.28% upside based on Tuesday’s closing price. The most optimistic analysts forecast a price of $125, while the most pessimistic forecast a price of $73.
Should You Add Gilead Sciences (GILD) To Your Portfolio in 2025?
Gilead Sciences’ core strengths lie in its leadership in HIV treatment and prevention. It has also expanded its product pipeline to include an oncology portfolio. Additionally, it has heavily invested in R&D, spending $1.6 billion in Q4 alone.
Investors should closely watch its lenacapavir rollout, as well as the growth of its oncology pipeline. Its recent results, coupled with its upcoming pipeline, make GILD stock a potentially great investment. Adding GILD to your portfolio could potentially deliver market-beating results in the medium and long term.
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