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Mar 31, 2020
Gilead Sciences Q1 2020 Earnings Report
Gilead's performance in Q1 2020 demonstrated continued progress and highlighted the strength of its underlying business.
Key Takeaways
Gilead Sciences reported total revenues of $5.5 billion, a 5% increase compared to Q1 2019. Diluted EPS was $1.22, while non-GAAP diluted EPS was $1.68. The company is focused on remdesivir and its ongoing commitments to existing medicines.
Total revenues increased by 5% compared to the same period in 2019, reaching $5.5 billion.
Net income decreased by 21% to $1.6 billion, with diluted EPS at $1.22.
Non-GAAP net income was $2.1 billion, with non-GAAP diluted EPS at $1.68.
Product sales benefited from an estimated $200 million in revenue due to increased customer buying patterns related to the COVID-19 pandemic.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
There is significant uncertainty about the progression and ultimate impact of the pandemic on Gilead’s business and operations. Gilead anticipates that COVID-19 could impact its business in the short-term due to factors such as fewer patients accessing treatment for conditions such as HIV and HCV, however, the impact of these developments is uncertain. The total investments in remdesivir, primarily to expand manufacturing production, throughout 2020 could be material.
Positive Outlook
- Remdesivir was found to shorten the time to recovery for hospitalized patients with COVID-19 when compared with a placebo.
- The study demonstrated similar clinical improvements in patients with severe symptoms of COVID-19, regardless of whether they received five or ten days of treatment.
- More than 140,000 treatment courses of remdesivir will be manufactured by the end of May 2020.
- More than one million treatment courses will be manufactured by December 2020, with plans to be able to produce several million treatment courses in 2021.
- Gilead will focus on making remdesivir both accessible and affordable to governments and patients around the world.
Challenges Ahead
- COVID-19 could impact its business in the short-term due to factors such as fewer patients accessing treatment for conditions such as HIV and HCV
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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