What happened
Shares of Gilead Sciences (NASDAQ: GILD) are jumping today, up by 6.5% as of 11:23 a.m. ET. The gain came after the big biotech announced its second-quarter results following the market close on Tuesday.
Gilead reported Q2 revenue of $6.3 billion, up 1% year over year and better than what Wall Street expected. The company posted adjusted earnings of $1.58 per share. While this reflected a 13% year-over-year decline, it was higher than the consensus estimate of $1.51 per share.
The company also raised its full-year guidance. Gilead now expects total product sales in 2022 will be between $24.5 billion and $25 billion. It previously forecast sales in the range of $23.8 billion to $24.3 billion. In addition, Gilead now looks for adjusted earnings per share between $6.35 and $6.75, up from its previous guidance of $6.20 to $6.70.
So what
2022 hasn't been great for Gilead so far. The biotech stock was down 18% year to date before today's gain.
But did Gilead's Q2 update reflect a significant turning point? Not really. Even the upper end of its revenue and earnings guidance ranges are lower than the company's results in 2021.
Gilead does have some bright spots. Sales for HIV drug Biktarvy, breast cancer drug Trodelvy, and cancer cell therapies Yescarta and Tecartus soared in Q2. However, most of the company's other products didn't fare so well -- especially COVID-19 drug Veklury, which experienced a 46% year-over-year sales decline.
Now what
Gilead has several potential catalysts in the coming months. The company hopes to win U.S. approval for HIV therapy lenacapavir before year-end. It also expects to report interim results from a late-stage study evaluating magrolimab in treating myelodysplastic syndromes by early 2023.
10 stocks we like better than Gilead Sciences
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Gilead Sciences wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of July 27, 2022
Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Gilead Sciences. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
