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Mar 31, 2024
Gilead Sciences Q1 2024 Earnings Report
Gilead Sciences reported a mixed Q1 2024, with revenue growth offset by significant IPR&D charges, impacting EPS negatively.
Key Takeaways
Gilead Sciences announced its Q1 2024 financial results, revealing a 5% increase in total revenue to $6.7 billion. However, the company reported a diluted loss per share of $(3.34), primarily due to a $3.9 billion acquired IPR&D charge related to the CymaBay acquisition and a $2.4 billion IPR&D impairment. Excluding Veklury, product sales increased by 6% year-over-year. The company's non-GAAP diluted EPS was $(1.32).
Total revenue increased by 5% year-over-year to $6.7 billion, driven by higher HIV, Oncology, and Liver Disease sales.
Diluted EPS was $(3.34), impacted by a $3.9 billion acquired IPR&D charge from the CymaBay acquisition and a $2.4 billion IPR&D impairment.
Non-GAAP diluted EPS was $(1.32), primarily driven by the CymaBay acquisition charge.
HIV product sales increased by 4% to $4.3 billion, with Biktarvy sales up 10% to $2.9 billion.
Gilead Sciences
Gilead Sciences
Gilead Sciences Revenue by Segment
Gilead Sciences Revenue by Geographic Location
Revenue by Segment
HIV Revenue
CapyFin.comHCV products Revenue
CapyFin.comYescarta Revenue
CapyFin.comOther product sales Revenue
CapyFin.comRevenue by Geographic Location
U.S. Revenue
CapyFin.comEurope Revenue
CapyFin.comRest of World Revenue
CapyFin.com Forward Guidance
Gilead provided full-year 2024 guidance, expecting product sales between $27.1 billion and $27.5 billion, and product sales excluding Veklury between $25.8 billion and $26.2 billion. Diluted EPS is projected to be between $0.10 and $0.50, and non-GAAP diluted EPS between $3.45 and $3.85.
Positive Outlook
- Product sales are expected to be between $27.1 billion and $27.5 billion.
- Product sales, excluding Veklury, are projected to be between $25.8 billion and $26.2 billion.
- Veklury sales are expected to be $1.3 billion.
- Non-GAAP projected product gross margin 85.0% - 86.0%.
- Non-GAAP projected effective tax rate ~ 30%
Challenges Ahead
- Diluted EPS is projected to be between $0.10 and $0.50, previously $5.15 to $5.55.
- Non-GAAP diluted EPS is projected to be between $3.45 and $3.85, previously $6.85 to $7.25.
- GAAP projected operating income $1,900 - $2,400, previously $8,700 - $9,200.
- IPR&D impairment, acquisition-related and restructuring expenses ~ $5,100, previously ~ $2,500.
- GAAP projected effective tax rate ~ 65%, previously ~ 21%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income