Gilead Sciences Reports Strong Q2 2024 Financial Results
Intellectia.AI Updated: 1970-01-01
Gilead Sciences Reports Strong Q2 2024 Financial Results
Gilead Sciences, Inc. (NASDAQ:GILD) announced its financial results for the second quarter of 2024, reflecting a robust performance driven by its core HIV, Liver Disease, and Oncology segments.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | Year-over-Year Change | Consensus Estimate | Actual vs. Consensus |
|---|---|---|---|---|---|
| Total Revenue | $7.0 billion | $6.67 billion | +5% | $6.72 billion | Beat |
| Diluted EPS | $1.29 | $0.83 | +55% | $1.60 | Miss |
| Non-GAAP Diluted EPS | $2.01 | $1.34 | +50% | N/A | N/A |
| Operating Cash Flow | $1.3 billion | N/A | N/A | N/A | N/A |
Interpretation: Gilead Sciences demonstrated solid growth in the second quarter of 2024, surpassing the consensus revenue estimate while significantly improving year-over-year earnings per share. The quarter's revenue of $7.0 billion was primarily driven by increased product sales in the HIV, Liver Disease, and Oncology segments.
Revenue Performance by Segment
| Segment | Q2 2024 | Q2 2023 | Year-over-Year Change |
|---|---|---|---|
| Total Product Sales | $6.9 billion | $6.55 billion | +5% |
| Product Sales (Excluding Veklury) | $6.7 billion | $6.31 billion | +6% |
| Biktarvy Sales | $3.2 billion | $2.96 billion | +8% |
| Oncology Sales | $841 million | $731 million | +15% |
| HIV Product Sales | $4.7 billion | $4.56 billion | +3% |
| Liver Disease Portfolio Sales | $832 million | $711 million | +17% |
| Cell Therapy Product Sales | $521 million | $469 million | +11% |
Interpretation: Gilead Sciences experienced significant growth across key segments, particularly in Oncology (up 15%) and the Liver Disease portfolio (up 17%). The growth in Biktarvy sales was notable at 8%.
Operational Data
| Metric | Q2 2024 |
|---|---|
| Cash and Equivalents | $2.8 billion |
| Acquisition Costs | $3.9 billion |
| Senior Notes Repayment | $1.75 billion |
| Dividends | $972 million |
| Stock Repurchasing | $100 million |
| Product Gross Margin (GAAP) | 77.7% |
| Product Gross Margin (Non-GAAP) | 86.0% |
| Effective Tax Rate (GAAP) | 21.4% |
| Effective Tax Rate (Non-GAAP) | 17.8% |
Officers' Comments
Daniel O'Day, Gilead's Chairman and CEO, highlighted the company's strong performance due to its diverse portfolio and promising clinical trials such as the Phase 3 PURPOSE 1 trial for lenacapavir showing 100% efficacy for HIV prevention in cisgender women.
Dividends and Share Repurchase Program
Gilead declared a quarterly dividend of $0.77 per share payable on September 27, 2024, and repurchased $100 million of its common stock during Q2 2024.
Forward Guidance
Gilead Sciences has provided its full-year 2024 guidance, reflecting its confidence in continued growth.
Stock Price Movement
Following the earnings release, Gilead’s stock saw a post-event increase of approximately 2.15%.
In conclusion, Gilead Sciences posted strong second quarter 2024 results, driven by significant growth across its major product segments and strategic financial management, reaffirming investor confidence.