Gilead Sciences Q2 Profit Beats Views, Shares Rise

Shares of

surged over 2 percent in after-hours trading after the company reported better-than-expected earnings for the second quarter and raised its FY15 sales forecast. The Foster City, California-based company posted quarterly net income of $4.5 billion, or $2.92 per share, up from $3.7 billion, or $2.20 per share, in the year-ago quarter. Excluding items, the company's non-GAAP earnings climbed to $3.15 per share from $2.36 per share. Its total revenue jumped to $8.2 billion from $6.5 billion. However, analysts were expecting earnings of $2.71 per share on revenue of $7.61 billion. Total product sales rose to $8.1 billion for the second quarter, versus $6.4 billion in the year-ago quarter. Product sales in the U.S. gained to $5.6 billion from $4.8 billion, while product sales in Europe rose to $2.0 billion from $1.3 billion. The average estimate among 281 Estimize users was for earnings of $2.78 per share and revenue of $7.55 billion. As of June 30, 2015, the company had $14.7 billion of cash, cash equivalents and marketable securities, versus $14.5 billion as of March 31, 2015. The company's board declared a cash dividend of $0.43 per share of common stock for the third quarter. Gilead now expects FY15 product sales of $29 billion to $30 billion. Gilead Sciences shares gained 2.33 percent to $115.70 in the after-hours trading session.