The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Gilead Sciences met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew.
Margins contracted across the board.
Gilead Sciences reported revenue of $2.20 billion. The 22 analysts polled by S&P Capital IQ anticipated revenue of $2.18 billion. Sales were 10% higher than the prior-year quarter's $2.00 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.97. The 25 earnings estimates compiled by S&P Capital IQ forecast $1.04 per share on the same basis. GAAP EPS of $0.87 for Q4 were 14% higher than the prior-year quarter's $0.76 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 73.4%, 180 basis points worse than the prior-year quarter. Operating margin was 39.4%, 960 basis points worse than the prior-year quarter. Net margin was 30.2%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.22 billion. On the bottom line, the average EPS estimate is $1.00.
Next year's average estimate for revenue is $9.09 billion. The average EPS estimate is $4.13.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,105 members out of 2,164 rating the stock outperform, and 60 members rating it underperform. Among 621 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 612 give Gilead Sciences a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Gilead Sciences is outperform, with an average price target of $49.29.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of 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.