
Gilead Sciences (GILD)
Gilead Sciences Q4 2010 Performance and 2011 Business Outlook
Q4 2010 Financial Results:
Total revenue for the quarter was $2.00 billion, slightly above internal estimates of $1.96 billion and consensus of $1.99 billion. Key revenue-generating segments contributed $1.69 billion, meeting consensus expectations. Non-GAAP EPS was reported at $0.95 (estimate: $0.92, consensus: $0.94), and GAAP EPS was $0.76 (estimate: $0.85, consensus: $0.88).
Regulatory and Development Update:
A regulatory submission was declined due to incomplete data related to manufacturing and analytical methodologies, resulting in a four-month delay in a product launch. This adjustment lowered the revenue projection for the year by $11.5 million.
Share Repurchase Program:
A new $5 billion share repurchase plan has been authorized, spanning three years. This follows $4 billion in shares repurchased during 2010, with $2 billion remaining under the current program. Depending on the pace of buybacks, the program is projected to impact 2011 EPS, which is now adjusted to $4.06, with a range between $3.95 and $4.50.
2011 Revenue and Expense Guidance:
Revenue projections for 2011 range from $7.9 billion to $8.1 billion, consistent with internal estimates. However, operating expenses, particularly in SG&A, are expected to increase due to sector-specific regulatory changes.
Strategic Focus Areas:
Investments in key research areas aim to enhance long-term growth and address evolving market demands. Expansion into new therapeutic sectors is expected to diversify the portfolio and offset lifecycle challenges for existing products. Potential strategic acquisitions may strengthen capabilities in targeted verticals.