Why Gilead Sciences Stock Is Trading Lower After The Bell

Gilead Sciences, Inc. GILD shares are trading lower in Tuesday’s after-hours session after the company reported weak earnings results and issued soft guidance.

• Q4 Revenue: $7.1 billion, in line with estimates

• Q4 EPS: $1.72, missed estimates of $1.76

Total revenues were down 4% in the fourth quarter, primarily due to lower Veklury (remdesivir) and HIV sales. The company said earnings were impacted by higher total costs and expenses and lower Veklury revenues.

Gilead generated $2.2 billion in operating cash flow during the quarter. The company used $150 million to repurchase common stock and paid $943 million in cash dividends. Gilead ended the quarter with $8.4 billion in cash, cash equivalents and marketable debt securities.

“The strength of the business provides a solid foundation as we enter a new catalyst-rich phase for the company. We are expecting several milestones in 2024, including updates on long-acting HIV prevention and treatment, Cell Therapy and Trodelvy,” said Daniel O’Day, chairman and CEO of Gilead.

Outlook: Gilead expects full-year 2024 revenue to be between $27.1 billion and $27.5 billion versus estimates of $27.663 billion, per Benzinga Pro. The company guided for full-year earnings of $6.85 to $7.25 per share versus estimates of $7.21 per share.

Gilead’s board also authorized a 2.7% increase to the company’s dividend. The company will pay a first-quarter dividend of 77 cents per share on March 28 to shareholders of record as of March 15.

See Also: E.l.f. Beauty Shares Climb After Q3 Earnings Beat, Raises 2024 Guidance Above Estimates

GILD Price Action: Gilead shares were down 2.86% after hours Tuesday at $75.50 at the time of publication, according to Benzinga Pro.

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