Gilead seen reporting higher Q2 earnings, despite drop in COVID-19 drug sales
Justin Sullivan
Gilead Sciences is expected to report higher Q2 earnings on Thursday, with sales of its blockbuster HIV drugs helping to offset an anticipated sharp drop in sales of its COVID-19 therapy Veklury.
Analysts, on average, estimate the California-based biotech will post a non-GAAP profit of $1.64 per share, on revenue of $6.45B. For Q2 2022, Gilead beat the Street on the top and bottom lines by reporting non-GAAP EPS of $1.58 on revenue of $6.26B 
Gilead has a strong track record of beating the Street on the topline, with revenue besting consensus estimates 8 times over the past two years. Its bottom-line performance has been less predictableâthe biotech has beat estimates 6 times, but missed twice.
Last quarter, Gilead reported a 4% decline in revenue, due largely to a 63% drop in Veklury sales that were partially offset by strong sales of its HIV treatment Biktarvy, which jumped 24% to $2.7B, and oncology drugs, which soared 59% to $670M. 
Despite topline decline, Gilead still managed to beat the Street's Q1 revenue estimate by $23.88M, reporting $6.35B, but missed the bottom-line number by $0.17, posting adjusted EPS of $1.37.
Investors will also be watching to see if Gilead adjusts its 2023 outlook of product sales in the range of $26B to $26.5B, and non-GAAP EPS of $6.60 to $7, which it reaffirmed last quarter. 
The SA consensus is for Gilead to report 2023 revenue of $26.66B and non-GAAP EPS of $6.73.
Wall Street and SA analysts currently rate Gilead a buy, on average. The company's Quant rating is hold.
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