Mar 31, 2022

Gilead Sciences Q1 2022 Earnings Report

Gilead Sciences' performance reflected the strength and diversity of its business, with both HIV and oncology therapies contributing to year-over-year growth.

Key Takeaways

Gilead Sciences announced its Q1 2022 financial results, with revenue increasing by 3% to $6.6 billion. Biktarvy sales increased 18% year-over-year to $2.2 billion, and oncology sales increased 60% year-over-year to $420 million. Diluted EPS decreased to $0.02, while non-GAAP diluted EPS increased 4% to $2.12.

First quarter 2022 revenue increased 3% to $6.6 billion compared to the same period in 2021.

Biktarvy sales increased 18% year-over-year.

Oncology sales increased 60% year-over-year.

Non-GAAP diluted EPS increased 4% to $2.12.

Total Revenue
$6.59B
Previous year: $6.42B
+2.6%
EPS
$2.12
Previous year: $2.08
+1.9%
Product gross margin
78.2%
Previous year: 78.5%
-0.4%
Gross Profit
$5.17B
Previous year: $5.06B
+2.1%
Cash and Equivalents
$4.3B
Previous year: $4.07B
+5.7%
Free Cash Flow
$1.59B
Previous year: $2.45B
-34.8%
Total Assets
$63.1B
Previous year: $67.5B
-6.5%

Gilead Sciences

Gilead Sciences

Gilead Sciences Revenue by Segment

Gilead Sciences Revenue by Geographic Location

Forward Guidance

Gilead updated its EPS guidance to primarily reflect the $2.7 billion IPR&D impairment. The company now expects EPS between $3.00 and $3.50, compared to $4.70 and $5.20 previously. There is no change to other guidance shared on February 1, 2022.

Positive Outlook

  • Total product sales between $23.8 billion and $24.3 billion.
  • Total product sales, excluding Veklury, between $21.8 billion and $22.3 billion.
  • Total Veklury sales of approximately $2.0 billion.
  • Non-GAAP earnings per share between $6.20 and $6.70.
  • The financial guidance excludes the impact of any expenses related to potential acquisitions or business development transactions that have not been executed, fair value adjustments of equity securities and discrete tax charges or benefits associated with changes in tax related laws and guidelines as Gilead is unable to project such amounts.

Challenges Ahead

  • Uncertainty around the duration and magnitude of the COVID-19 pandemic.
  • Potential adverse revenue impacts from COVID-19.
  • Potential revenues from Veklury.
  • The rate and degree of these impacts as well as the corresponding recovery from the pandemic may vary across Gilead’s business.
  • The financial guidance is subject to a number of risks and uncertainties.