Shares of California-based biopharmaceutical company Gilead Sciences, Inc. (GILD) slipped 2.3% in the extended trading session on Thursday, even though the company reported outstanding financial results for the third quarter of 2021.
Gilead engages in the research, development and sale of antiviral drugs for the treatment of diseases like human immunodeficiency virus (HIV), hepatitis B, hepatitis C and influenza.
Adjusted earnings per share (EPS) grew 26% year-over-year to $2.65, surpassing the Street’s estimate of $1.71. Revenue increased 13% to $7.4 billion and beat analysts’ expectations of $6.18 billion.
During the quarter, HIV product sales decreased 8% year-over-year to $4.2 billion due to lower channel inventory and loss of exclusivity of Atripla and Truvada in the U.S. Additionally, HCV product sales declined 8% to $429 million.
Meanwhile, HBV product sales rose 17% year-over-year to $247 million and sales of Cell Therapy products soared 51% to $222 million. (See Insiders’ Hot Stocks on TipRanks)
The Chairman and CEO of Gilead, Daniel O’Day, said, “This was a very strong third quarter with continued positive momentum for both our commercial performance and our pipeline progress.”
Notably, the company has raised its guidance for 2021. It now expects product sales to lie between $26 billion and $26.3 billion, compared to the previous guidance of $24.4 billion to $25.0 billion.
Further, GILD anticipates adjusted EPS to range from $7.90 to $8.10, up from the earlier range of $6.90 to $7.25.
Overall, the stock has a Moderate Buy consensus rating based on 8 Buys and 3 Holds. The average Gilead Sciences price target of $80.50 implies 19.5% upside potential. Shares have gained 15.1% over the past year.
According to TipRanks’ Smart Score rating system, Gilead scores a “Perfect 10,” suggesting that the stock is likely to outperform market averages.
Related News:
Apple Drops 3.5% as Q4 Revenues Disappoint, Supply Crunch Hurts
Lightspeed Announces New Flagship E-Commerce Product
Cognizant Posts Impressive Q3 Results; Shares Rise
