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Gilead Sciences Reiterated Fiscal 2019 Revenue Guidance

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Revenue guidance

In its first-quarter earnings press release, Gilead Sciences (GILD) reiterated its fiscal 2019 net product sales guidance of $21.30 billion–$21.80 billion.

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Analysts expect Gilead Sciences’ revenues to change YoY by -0.76% to $21.96 billion in fiscal 2019, 2.36% to $22.48 billion in fiscal 2020, and 0.08% to $22.49 billion in fiscal 2021.

Analysts also expect Gilead Sciences’ revenues to change YoY by -2.59% to $5.50 billion in the second quarter, -1.29% to $5.52 billion in the third quarter, and -2.39% to $5.66 billion in the fourth quarter of fiscal 2019.

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Net product sales by geography in the first quarter

In the first quarter, Gilead Sciences reported $3.8 billion worth of product sales from the US market, a YoY rise of 8% but a sequential decline of 15%. According to the first-quarter earnings conference call, around $400 million of this sequential revenue decline is attributable to seasonal inventory drawdown of HIV products and a shift in payer mix HIV products towards public payers.

In the first quarter, Gilead Sciences reported $882 million worth of product sales from the European market, a YoY decline of 12% but a sequential rise of 8%. In the absence of the unfavorable accounting adjustment, which depressed the company’s revenues in the fourth quarter, Gilead Sciences would have reported a flat sequential revenue performance in the first quarter. The company suffered from lower new patient starts and increasing competition for its (hepatitis C) products and increasing generic competition for its HIV products in Europe.

In the first quarter, Gilead Sciences reported revenues of $522 million from other international markets, a YoY rise of 11.30% and a sequential rise of 31.15%.

 

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