Gilead Stock: Gilead Hikes Profit Outlook As Biggest HIV Drug Outperforms Expectations

Gilead stock traded sideways late Thursday despite reporting strong sales from its bread-and-butter HIV treatment, Biktarvy, and its cell therapies.

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Biktarvy is Gilead Sciences‘ (GILD) biggest single product. Sales of the once-daily pill rose 8.5% to $3.2 billion, beating expectations for $3.18 billion. Now, the biotech company is looking ahead to its HIV prevention drug, lenacapavir. If approved, lenacapavir would be a once-every-six-months shot.

Meanwhile, cancer treatments proved a mixed bag. Revenue from cell therapies Tescartus and Yescarta topped expectations with a respective $107 million and $414 million. But sales of breast cancer treatment Trodelvy came in light at $320 million, though grew more than 23%.

In after-hours trading, Gilead stock was mostly flat after closing up 2.2% at 75.59.

Gilead Stock: Sales, Earnings Beat

Total product sales — which excludes other sources of revenue like royalties — increased 5% to $6.91 billion. Excluding revenue from Covid treatment Veklury, which saw a 16% decline, total product sales rose 6%. Analysts called for $6.67 billion in product sales.

The strongest growth came from sales of liver disease treatments, which surged 17% to $832 million. HIV, Gilead’s biggest segment, tacked on 3% growth to $4.75 billion. Sales of cancer treatments jumped 15% to $841 million.

Gilead kept its sales outlook for $27.1 billion to $27.5 billion. Analysts following Gilead stock projected $27.4 billion in product sales. The company boosted its adjusted earnings outlook by 10 cents at the midpoint to $3.60 to $3.90 per share. The Street called for $3.76.

Gilead stock is forming a cup-with-handle base with a buy point at 78.45, according to MarketSurge.

Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.

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