Gilead Q4 net income soars 334% YoY helped by massive decline in cost of goods sold
CharlieAJA


Gilead Sciences (NASDAQ:GILD) saw its Q4 2022 net income rise 334% to ~$1.6B compared to the prior-year period ($1.30 diluted EPS vs. $0.30) thanks in part to a major reduction in cost of goods sold.
In Q4 2021, that figure was ~2.6B. A year later, it was ~$1.4B. In that same quarter, Gilead (GILD) was also hurt by a $1.25B charge from a legal settlement and a charge of $625M related to Arcus Biosciences (RCUS).

However, for the full-year, net income dropped 26% to ~$4.6B compared to 2021. Gilead (GILD) saw a 30% year-over-year decline in 2022 of its COVID-19 medicine Veklury (remdesivir) to ~$3.9B.
The quarterly net income bounce and 2% YoY rise in revenue led the biotech giant to beat on the top and bottom lines in Q4. In addition, its 2023 revenue and EPS guidance came in above consensus.
Sales of the company's best selling drug, the HIV medicine Biktarvy (bictegravir/emtricitabine/tenofovir), rose 15% to ~$2.9B in the quarter compared to the prior-year period.
Gilead (GILD) ended 2022 with ~$5.4B in cash and cash equivalents, compared to ~$5.3B at the end of 2022.
Seeking Alpha contributor Geoff Considine says that Gilead (GILD) is a hold as its current valuation is appropriate.