Gilead Sciences, Inc. (GILD) Shares Slide on Weak Outlook

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Gilead Sciences, Inc. (NASDAQ:GILD) shares declined late Tuesday as the company reported on its latest quarter.

Gilead Sciences, Inc. (GILD)The company reported fourth-quarter earnings at a loss of $3.87 billion, or $2.96 per share, below the net income of $3.11 billion, or $2.34 per share from the year-ago period. Earnings were hit hard by a $5.5 billion charge related to the recent U.S. tax reform.

Gilead Sciences’ earnings came in at $1.78 per share on an adjusted basis, topping the Wall Street consensus estimate of $1.67 per share, according to data compiled by FactSet.

Revenue amounted to $5.95 billion, below the year-ago sales of $7.32 billion. Analysts polled by FactSet were calling for revenue of $5.71 billion.

For the full-year, Gilead Sciences predicts revenue of $20 billion to $21 billion, below analysts’ outlook of $21.94 billion in revenue. The company’s board recently approved 10% increase in its quarterly dividend to 57 cents per share.

The company has been working towards diversifying its portfolio as its hepatitis C drugs have started losing steam, despite bringing in $9.1 billion in 2017. Demand has fallen due to many of the easiest to find patients receiving treatment already.

Gilead Sciences projects its 2018 hepatitis C drug sales to be in the range of $3.5 billion to $4 billion, which is well below the average of $5.45 billion that analysts expect, according to data compiled by Bloomberg.

GILD stock fell 0.5% after the bell Tuesday afternoon..


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