Mar 31, 2023

Gilead Sciences Q1 2023 Earnings Report

Gilead Sciences' financial performance was marked by a decrease in total revenue, offset by growth in key product areas.

Key Takeaways

Gilead Sciences reported a 4% decrease in total revenue to $6.4 billion, driven by lower Veklury sales, but experienced growth in HIV and Oncology. Diluted EPS increased to $0.80, while non-GAAP diluted EPS decreased to $1.37. The company maintains a strong cash position with $7.2 billion in cash and cash equivalents.

Total revenue decreased by 4% to $6.4 billion due to lower Veklury sales.

HIV product sales increased by 13% to $4.2 billion, driven by favorable pricing and higher demand.

Oncology sales increased by 59% to $670 million, driven by Trodelvy and Cell Therapy.

Diluted EPS increased to $0.80, while non-GAAP diluted EPS decreased to $1.37.

Total Revenue
$6.35B
Previous year: $6.59B
-3.6%
EPS
$1.37
Previous year: $2.12
-35.4%
Product gross margin
77.8%
Previous year: 78.2%
-0.5%
Gross Profit
$4.95B
Previous year: $5.17B
-4.2%
Cash and Equivalents
$7.2B
Previous year: $4.3B
+67.6%
Free Cash Flow
$1.64B
Previous year: $1.59B
+2.6%
Total Assets
$61.9B
Previous year: $63.1B
-1.9%

Gilead Sciences

Gilead Sciences

Gilead Sciences Revenue by Segment

Gilead Sciences Revenue by Geographic Location

Forward Guidance

Gilead anticipates total product sales between $26.0 billion and $26.5 billion, with Veklury sales expected to be approximately $2.0 billion. Diluted earnings per share are projected between $4.75 and $5.15, and non-GAAP diluted earnings per share between $6.60 and $7.00.

Positive Outlook

  • Total product sales between $26.0 billion and $26.5 billion, unchanged from prior guidance.
  • Total product sales, excluding Veklury, between $24.0 billion and $24.5 billion, unchanged from prior guidance.
  • Total Veklury sales of approximately $2.0 billion, unchanged from prior guidance.
  • Non-GAAP diluted earnings per share between $6.60 and $7.00, unchanged from prior guidance.

Challenges Ahead

  • Diluted earnings per share between $4.75 and $5.15, compared to $5.30 and $5.70 previously.
  • Veklury sales are expected to be highly variable, depending on the frequency and severity of surges
  • Uncertainty around the duration and magnitude of the COVID-19 pandemic.
  • The financial guidance is subject to a number of risks and uncertainties