Independent biopharmaceutical company Gilead Sciences, Inc. (NASDAQ: GILD) on Tuesday, February 6, 2018, posted the results for its fourth quarter of 2017 and the numbers were somewhat mixed.
At the top level of analysis GILD posted earnings of $1.78 a share off of revenues of $5.95B. The non-GAAP figures were a cut above some estimates. Zacks Research had pegged GILD to come in at $1.70 a share with a predicted estimate for revenue standing at $5.78B.
On a much more granular level, the figures showed investors just what has been going on with GILD over the reporting period. Total product sales for the fourth quarter 2017 actually fell, coming in at $5.8B compared to the $7.2B that GILD recorded for the same quarter in 2017. The numbers also reflected the distribution of sales by region. GILD managed to deliver product sales of $4.1B in the US; product sales of $1.1B in Europe, and total product sales of $533M across a mix of other regions.
GILD joins just a handful of companies that haven’t taken the full brunt of the recent stock market sell-off. By holding their nerves, investors are perhaps showing that they fully understand the current volatility, while at the same time extending their steadiness to the way things have been going for GILD over the last few quarters.
The coming months of 2018 could also see companies like GILD being affected by the Trump tax policy which came into effect recently. Several companies, many of which operate in the pharmaceutical space, have started to see the full impact of the tax package. Many are readjusting reports upwards as the tax benefits kick in for them. Some companies have started to divert the money saved in taxes in either employee benefits or R&D. For its part GILD hasn’t disclosed the impact of the new taxes, nor has management said anything about possible deployments for any tax savings should they occur.
GILD has projected net product sales of $20B on the low side with $21B on the high side. The company expects to deliver non-GAAP gross margin in the range 85 – 87%. These figures will play host to some solid figures that have helped established GILD as one of the premier players in the pharmaceutical space. The company has seen market cap risen to over $107B and GILD currently has a P/E Ratio of 9.15. The Forward P/E is 11.93 and GILD has a current ROA of 19.40%. ROE is even bigger, coming in at 53.40% — clearly one of the top companies for equity investors.
GILD closed trading on Tuesday at $78.75, pushing up in the positive territory in the after-hours to reach $80.38. This is not the biggest gains investors have seen in recent months as the GILD 12-month high is $89.54 with a corresponding 12-month low of 63.76. From current levels investors are looking north with the consensus estimate of $87.79 set as the target price for GILD.