Gilead shares fall after hours despite top and bottom line quarterly beats
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Despite beating Street estimates on revenue and non-GAAP EPS, Gilead Sciences (NASDAQ:GILD) shares are down ~4% in after-hours trading.
However, Q4 2021 revenue of $7.2B was a 2% decrease compared to the same period in 2021. Gilead attributed the drop to a decline in sales of its COVID-19 therapy Veklury (remdesivir).
Veklury sales decreased 30%to$1.4B in Q4. The company is only expecting Veklury total sales for all of 2022 of $2B as a result of decreases in COVID hospitalizations.
Bright spots in revenue included a 7% year-over-year increase in its HIV franchise to $4.5B. The 22% increase in Biktarvy (bictegravir/emtricitabine/tenofovir) sales was able to outweigh significant declines in sales of Truvada (emtricitabine/tenofovir) and Atripla (efavirenz/emtricitabine/tenofovir) from patent expirations.
Separately, Gilead entered into an agreement today with GlaxoSmithKline-majority owned Viiv Healthcare to settle a patent dispute. Gilead will pay Viiv $1.25B upfront and a 3% royalty on sales of Biktarvy. 
Sales of Gilead's cell therapy products -- Yescarta (axicabtagene ciloleucel) and Tecartus (brexucabtagene autoleucel) -- rose 47% to $239M year over year.
Diluted EPS of $0.30 in Q4 comparedto$1.23 in the year-ago period was primarily the result of a $1.25B chargerelatedtoa legalsettlementandachargeof$625M relatedtotheArcusBiosciences (NYSE:RCUS) collaborationopt-in.
The company ended the year with $7.8B in cash.
Read why Seeking Alpha contributor Mott Capital Management rated Gilead a sell last month.