(RTTNews) - Gilead Sciences, Inc. (GILD) Wednesday reported a swing to profit in the third quarter, as revenues grew 17% driven by remdesivir sales.
Profit for the third quarter were $360 million or $0.29 per share, compared to loss of $1.2 billion or $0.92 per share last year.
Adjusted earnings were $2.7 billion or $2.11 per share, up from $2.1 billion or $1.64 per share last year.
Revenues for the third quarter grew 17% to $6.6 billion from $5.6 billion last year.
Analysts polled by Thomson Reuters expected earnings of $1.95 per share on revenues of $6.39 billion.
Product sales, excluding remdesivir, increased 2% year-over-year to $5.6 billion for the third quarter primarily due to Gilead's core HIV products. Remdesivir revenues were $873 million for the quarter.
"The recent acquisition of Immunomedics has effectively transformed Gilead's growth story. Building on the foundation of our strong core business, which proved its durability once again this quarter, we have now significant opportunity to drive additional growth at an accelerated pace," said CEO Daniel O'Day.
Looking forward to the full year 2020, the company now expects product sales of $23.00 billion to $23.50 billion, compared to previous guidance of $23.00 billion to $25.00 billion. Gilead now expects adjusted earnings of $6.25 to $6.60 per share, compared to prior outlook of $6.25 to $7.65 per share.
Analysts currently expect earnings of $6.98 per share and revenues of $24.17 billion.
Gilead's remdesivir is being tested as a specific treatment for COVID-19. On October 22, the FDA approved remdesivir, the first drug for use in adult and pediatric patients 12 years of age and older for the treatment of COVID-19 requiring hospitalization.
GILD closed Wednesday's trading at $58.72, down $1.29 or 2.15%, on the Nasdaq. The stock, however gained $1.17 or 1.99%, in the after-hours trade.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.