Gilead Crushes on Earnings, Quickly Gives Up Gains

Shares of Gilead

traded up sharply before turning back, remaining up 1.18 percent to $72.86 in Tuesday's post market session after

analysts' first quarter estimates. The company reported earnings per share of $1.48 versus the $0.92 estimate. Revenue came in at $5 billion, almost a 100 percent increase year over year. U.S. product sales for the first quarter rose to $3.63 billion, up over 259 percent compared to the same quarter in 2013 where the company reported a figure of $1.4 billion. In Europe, product sales increased to $1.02 billion, up over 22 percent from 2013. For individual product sales, Gilead reported Sovaldi sales at $2.27 billion, crushing estimates of $1.13 billion, while Atripla sales came in at $779.6 million, missing expectations of $888.6 million. Truvada also missed expectations, with sales coming in at $759.7 million versus the expected $765.6 million. Non-GAAP research and development (R&D) expenses increased due to the progression of Gilead's clinical studies, particularly in oncology and HIV. Gilead reiterated full year 2014 guidance.