Sep 30, 2021

Gilead Sciences Q3 2021 Earnings Report

Reported a strong third quarter with positive momentum in commercial performance and pipeline progress.

Key Takeaways

Gilead Sciences announced its Q3 2021 financial results, with total revenue of $7.4 billion, a 13% increase compared to the same period in 2020. Biktarvy sales increased 20% year-over-year to a record $2.3 billion, and Veklury sales were $1.9 billion. The company updated its full-year guidance, expecting total product sales between $26.0 billion and $26.3 billion and non-GAAP earnings per share between $7.90 and $8.10.

Total third quarter 2021 revenue increased 13% to $7.4 billion compared to the same period in 2020.

Diluted Earnings Per Share increased to $2.05 for the third quarter 2021 compared to $0.29 for the same period in 2020.

Non-GAAP diluted EPS increased 26% to $2.65 for the third quarter 2021 compared to $2.11 for the same period in 2020.

Biktarvy sales increased 20% year-over-year in the third quarter 2021 to record $2.3 billion.

Total Revenue
$7.42B
Previous year: $6.58B
+12.8%
EPS
$2.65
Previous year: $2.11
+25.6%
Product gross margin
83.4%
Previous year: 82.4%
+1.2%
Gross Profit
$6.2B
Previous year: $5.44B
+14.0%
Cash and Equivalents
$4.36B
Previous year: $26B
-83.2%
Free Cash Flow
$3.11B
Previous year: $2.1B
+48.6%
Total Assets
$67.1B
Previous year: $60.9B
+10.2%

Gilead Sciences

Gilead Sciences

Gilead Sciences Revenue by Segment

Gilead Sciences Revenue by Geographic Location

Forward Guidance

Gilead has updated its full-year guidance and now expects total product sales between $26.0 billion and $26.3 billion and non-GAAP earnings per share between $7.90 and $8.10.

Positive Outlook

  • Total product sales between $26.0 billion and $26.3 billion, compared to $24.4 billion and $25.0 billion previously.
  • Total product sales, excluding Veklury, of approximately $21.5 billion.
  • Total Veklury sales between $4.5 billion and $4.8 billion, compared to $2.7 billion and $3.1 billion previously.
  • GAAP earnings per share between $5.50 and $5.70, compared to $4.70 and $5.05 previously.
  • Non-GAAP earnings per share between $7.90 and $8.10, compared to $6.90 and $7.25 previously.

Challenges Ahead

  • Uncertainty around the duration and magnitude of the COVID-19 pandemic.
  • Potential adverse revenue impacts from COVID-19.
  • Increases in R&D expenses.
  • Potential revenues from Veklury.
  • Broader market dynamics may impact Gilead’s business.