Gilead Sciences: Still on the Path to Recovery
Gilead Sciences (NASDAQ: GILD) reported fourth-quarter earnings after the market close on Feb. 5 and the stock price fell 2% the following day. Although the company beat expectations at the top line, profits and earnings per share both disappointed, and guidance for 2020 underwhelmed investors.
With the stock trading close to its multi-year lows, the results provided little cause for optimism that things would be turning around at any time soon.
Both bullish and bearish investors could find some solace in the results. On the negative side, profitability suffered due to an increase in costs and expenses with non-GAAP (adjusted) earnings per share falling 10% year over year versus expectations of positive 10% growth. Gilead's hepatitis C virus (HCV) franchise –- historically its main profit engine -- continued to suffer, with overall revenues down 15% in the quarter. And guidance for next year came in on the light side of expectations, suggesting little to no growth for 2020. For someone who holds Gilead shares, patience seems to be turning into more of a vice than a virtue.
Source Fool.com
