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Gilead Sciences Inc. (NASDAQ: GILD) said on Thursday that its COVID-19 drug, Veklury, generated £1.39 billion of sales in the fiscal fourth quarter, making up 25% of the company’s total quarterly revenue. In comparison, experts had forecast a lower £880 million of sales.  

Gilead Sciences was reported about 3% up in extended trading on Thursday. Including the price action, the stock now has a per-share price of £49.33 versus a low of £41.39 per share in December. Learn more about how to pick winning stocks.

Gilead’s Q4 financial results versus analysts’ estimates

Gilead said that it earned £1.10 billion in the fourth quarter that translates to 90 pence per share. In the same quarter last year, its earnings stood at a much higher £1.97 billion or £1.55 per share. On an adjusted basis, the company earned £1.60 per share in the recent quarter.

Last month, Morgan Stanley upgraded its price target on Gilead’s stock to £60.65 per share. Gilead Sciences performed fairly downbeat in the stock market last year with an annual decline of more than 10%.

As per the biopharmaceutical company, it generated £5.41 billion of revenue in Q4 versus the year-ago figure of £4.31 billion. According to FactSet, experts had forecast the company to post £5.19 billion of revenue in the fourth quarter. Their estimate for adjusted per-share earnings was capped at a lower £1.49.

Gilead said that its HIV business posted an annualised sales decline of 7% in the recent quarter to £3.07 billion versus a higher £3.29 billion. Within this unit, however, Biktarvy sales jumped to £1.53 billion in Q4 from £1.10 billion last year. Gilead valued its Trodelvy sales in the fourth quarter at £46.76 million.

Gilead Sciences’ guidance for fiscal 2021

For fiscal 2021 as a whole, the Foster City-headquartered company now forecasts its total product sales to fall in the range of £17.32 billion to £18.34 billion. It expects up to £2.19 billion of Veklury sales for the full financial year. Adjusted EPS, as per Gilead Sciences, is expected between £4.93 and £5.44.

Brian Abrahams of RBC Capital Markets commented on Gilead’s earnings report on Thursday and said:

“Veklury should provide another year of cash flow and earnings boost to enable the oncology franchise to further mature as a long-term growth engine. We continue to believe their HIV durability and oncology optionality are undervalued in shares.”

At the time of writing, the American biopharmaceutical firm is valued at £60.30 billion and has a price to earnings ratio of 68.40.

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