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Update: Gilead Beats Estimates, But Guidance Spooks Investors

Gilead (GILD) reported earnings on Tuesday evening that were above both EPS estimates and revenue estimates. EPS came in at $2.43, which was 21 cents over analyst estimates. Revenue came in at $7.3 billion, which was $580 million above expectations.

Gilead also reported a massive buyback plan for 2015 and the initiation of a dividend.

Sales of Sovaldi and Harvoni accounted for $3.839 billion out of the $7.222 billion in product sales, or 53%. Most of the media is 99% focused on that 53% of sales, but the other 47% is well worth keeping an eye on. At this point, it is entirely possible that the "other" parts of Gilead will grow faster than Sovaldi/Harvoni and end 2015 at more than 47% of sales.

For 2015, the company guided for $26 billion to $27 billion in product sales, which would correspond to 6% to 10% growth in revenue. In my… Read More …