Why Gilead's Solid Q3 Earnings Could Point To A Dividend Surprise Next Year

(14min)

Summary

  • Gilead Sciences' Q3 2024 results exceeded expectations, driven by a strong performance of the HIV portfolio and increased demand for COVID-19 therapy Veklury.
  • Oncology remains a weak area, with CAR-T cell therapies underperforming. However, Trodelvy achieved good growth and now accounts for 5% of consolidated product sales.
  • Sales guidance was raised by 2.4%, primarily due to Veklury, while non-GAAP EPS guidance was raised by 16% for several reasons which I will highlight in the article.
  • Free cash flow surged, indicating the potential for an above-average dividend increase in January, though the current valuation dampens my enthusiasm for adding to my GILD stock position.

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FOTOKITA

Introduction

It was last in and around 2015 that Gilead Sciences, Inc. (NASDAQ:GILD) was celebrated for its breakthrough hepatitis C virus therapies Sovaldi (sofosbuvir) and Harvoni (combination of ledipasvir and sofosbuvir), which drove sales to an all-time high of nearly $33

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of GILD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The contents of this article, my previous articles, and my comments are for informational purposes only and may not be considered investment and/or tax advice. I am a private investor from Europe and share my investing journey here on Seeking Alpha. I am neither a licensed investment advisor nor a licensed tax advisor. Furthermore, I am not an expert on taxes and related laws - neither in relation to the U.S. nor other geographies/jurisdictions. It is not my intention to give financial and/or tax advice, and I am in no way qualified to do so. Although I do my best to make sure that what I write is accurate and well researched, I cannot be held responsible and accept no liability whatsoever for any errors, omissions, or for consequences resulting from the enclosed information. The writing reflects my personal opinion at the time of writing. If you intend to invest in the stocks or other investment vehicles mentioned in this article – or in any investment vehicle generally – please consult your licensed investment advisor. If uncertain about tax-related implications, please consult your licensed tax advisor.

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