Gilead Sciences (GILD) Stock Drops Despite Q1 Beat on Massive Acquisition Charges
Gilead Sciences, Inc., GILD Shares declined nearly 2% during after-hours trading Wednesday, and continued their descent with a 1% drop to $132.60 in Fridays premarket session. The biopharmaceutical company reported first-quarter revenue of $6.96 billion, narrowly beating the Streets $6.91 billion estimate. On the bottom line, adjusted earnings per share reached $2.03, comfortably ahead of the $1.91 analyst consensus compiled by FactSet. Building on these quarterly results, Gilead increased its full-year revenue outlook to a range of $30 billion to $30.4 billion, representing an upward adjustment from the previous $29.6 billion to $30 billion guidance. However, the earnings outlook painted a starkly different picture. Management now projects a full-year adjusted loss ranging from $0.65 to $1.05 per share. This represents a dramatic departure from the companys earlier guidance of $8.45 to $8.85 in positive earnings. The Street had anticipated $8.65 per share. The company attributed this guidance reversal to $11.5 billion in in-process research and development (IPR&D) expenses, combined with elevated financing costs stemming from several recent acquisitions. HIV Franchise Delivers Robust Performance Biktarvy, Gilead‘s leading HIV treatment, continued its strong momentum. The drug generated $3.4 billion in sales, reflecting 8% growth and representing approximately half of the company’s total quarterly revenue. The overall HIV segment demonstrated solid