Gilead Sciences (NASDAQ: GILD) reported third-quarter results on Oct. 24 that really won't do much for the stock. Revenue was flat year over year, as gains made in the HIV piece of the business were undermined by declines in hepatitis C drug sales.
Gilead cited heavy competition for the decline in chronic hepatitis C treatments. This falloff has been well documented over the past few years, as other companies have introduced hepatitis C drugs, with the resultant pricing competition forcing Gilead to look elsewhere for revenue. In the mean time, the stock has underperformed the S&P 500 for three years. More recently, as revenues have balanced out, the stock has been looking more appealing at its cheap valuation, prompting investors to ask when is the time to buy the stock. Yesterday's news took the shares down more than 4% today.