Loading...
•
Sep 30, 2020
Gilead Sciences Q3 2020 Earnings Report
Gilead Sciences' financial performance improved with increased product sales and non-GAAP diluted EPS.
Key Takeaways
Gilead Sciences reported a 17% increase in total revenues, driven by an 18% increase in product sales. Non-GAAP diluted EPS increased by 29%. The acquisition of Immunomedics was a key highlight of the quarter, expected to contribute to future revenue growth.
Product sales increased 18% to $6.5 billion year-over-year.
Product sales excluding Veklury increased 2% to $5.6 billion.
Non-GAAP diluted EPS increased 29% to $2.11.
The acquisition of Immunomedics was completed, adding Trodelvy to Gilead's oncology portfolio.
Gilead Sciences
Gilead Sciences
Gilead Sciences Revenue by Geographic Location
Revenue by Geographic Location
U.S. Revenue
CapyFin.comEurope Revenue
CapyFin.comRest of World Revenue
CapyFin.com Forward Guidance
Gilead updated its full year 2020 guidance to reflect the continued global progression of the COVID-19 pandemic.
Positive Outlook
- Product Sales of $23 billion to $23.5 billion
- Non-GAAP Product Gross Margin of 86% - 87%
- Non-GAAP Operating Income of $10.7 billion - $11.2 billion
- Effective Tax Rate of ~ 20%
- Non-GAAP Diluted EPS of $6.25 to $6.60
Challenges Ahead
- The COVID-19 pandemic continues to impact Gilead’s business and broader market dynamics, including HCV and PrEP market volume.
- Gilead expects its core business will continue to gradually recover in the fourth quarter 2020 and into the first half of 2021.
- Gilead expects that the company’s HIV treatment business will continue to remain largely unaffected
- By the first quarter of 2021, patients with HCV will begin to initiate treatment.
- Acquisition of Immunomedics is expected to be neutral to accretive to Gilead’s non-GAAP EPS in 2023 and significantly accretive thereafter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income