2024-02-10 03:58:57 ET
Summary
- Gilead Sciences reported its Q4 2023 results, which paint a picture of a stagnant company.
- Zooming in more closely, Gilead's different product categories show highly differentiating growth rates.
- While Gilead's HIV business is mostly flat with modest growth expectations, covid drug Veklury shows a strong decrease in sales, and oncology is on the rise.
- Gilead looks quite cheap, but the company is cheap for a reason, with no clear path to quickly increased profitability.
Gilead Sciences ( GILD ) reported its Q4 2023 results on last Tuesday, the 6th of February. The company reported flat year-on-year product sales, and slightly decreasing sales on a quarter-to-quarter basis. Coupled with more or less stagnant earnings and low expected growth in the 2024 outlook, these results do not look very positive on their own. Gilead's shares did not react well to the publication of its earnings: they lost almost 10 percent of their value since then. But when looking under the hood, the details of Gilead's individual business lines paint a more differentiated picture, with some drugs like Veklury performing bad but some, like the oncology business, much better....
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Gilead Sciences: Cheap For A Reason