Gilead Sciences Drops Jaws With a 209% Increase in Q1 Net Income

Sovaldi's record growth powers Gilead to a phenomenally strong first quarter.

Apr 22, 2014 at 5:11PM

Infectious disease-focused biopharmaceutical company Gilead Sciences (NASDAQ:GILD) did nothing short of dazzle Wall Street after the closing bell by reporting impressive top- and bottom-line growth in the first quarter.

Total revenue for the quarter increased by 98%, to $5 billion, with product sales more than doubling, to $4.87 billion, with U.S. product sales up 159%. The primary reason for the boost was recently approved hepatitis C therapy Sovaldi -- the first oral hepatitis C medication that can be given to genotype 2 and 3 patients without the need for interferon -- which was launched in December. Most Wall Street expectations had called for sales of around $1 billion. Sovaldi, in its first quarter, rocketed to $2.27 billion in sales, becoming the quickest drug in history to reach blockbuster status (greater than $1 billion in annual sales)... by a mile!

The remainder of Gilead's infectious disease pipeline was also strong with four-in-one HIV-1 therapy Stribild seeing sales rise 134%, to $215.3 million, as well as a 69% improvement in Complera/Eviplera sales to $250.7 million. The only disappointment was an 11% reduction in Atripla sales, but this is merely because physicians are switching patients to Stribild instead; so this is a win-win for Gilead, which supplies all four compounds in Stribild as opposed to splitting revenue three ways with Atripla.

Gilead's significantly smaller cardiovascular products segment also demonstrated improvement, with sales up 9%, to $234.5 million.

Profit for the quarter absolutely skyrocketed 209%, to $2.23 billion from $722.2 million in the year-ago quarter. Ultimately, this translated into $1.48 in adjusted EPS, light years ahead of Wall Street's expectations, which had called for a $0.90 profit.

Looking ahead, Gilead Sciences reaffirmed its full-year guidance, calling for $11.3 billion-$11.5 billion in revenue, and product gross margin of 75%-77%.

Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

The Motley Fool recommends Gilead Sciences. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers