(By Balaseshan) Gilead Sciences Inc. (NASDAQ: GILD) reported a 14.6% increase in quarterly earnings on higher product sales backed by HIV treating antiviral franchise. Results exceeded Street's expectations, sending its shares up 1.79% in aftermarket.
Earnings for the fourth quarter were $762.5 million or $0.47 per share, up from $665.1 million or $0.43 per share last year. Adjusted earnings per share (EPS) rose to $0.50 from $0.49.
Total revenue increased 18% to $2.59 billion.
Analysts, on average, polled by Thomson Reuters had expected a profit of $0.48 per share on revenue of $2.43 billion for the fourth quarter.
Product sales grew 18% to $2.51 billion, due primarily to Gilead's antiviral franchise, resulting from higher sales of Complera/Eviplera, Atripla and Truvada as well as the launch of Stribild.
Antiviral product sales increased 17% to $2.17 billion, reflecting sales growth of 20% in the U.S. and 9% in Europe. Cardiovascular product sales jumped 33% to $215.2 million. Sales of other products rose 15% to $127.7 million.
Research and development (R&D) expenses for the fourth quarter increased 9 percent. Adjusted R&D expenses rose 17 percent due primarily to the continued investment in Gilead's product pipeline, particularly in liver disease and oncology.
Selling, general and administrative (SG&A) expenses rose to $365.8 million from $346.2 million.
As of December 31, 2012, Gilead had $2.58 billion of cash, cash equivalents and marketable securities, down from $9.96 billion as of December 31, 2011, due to the acquisition of Pharmasset in the first quarter of 2012. Gilead generated $3.19 billion of operating cash flow in 2012 including $705.7 million generated in the fourth quarter of 2012.
GILD closed Monday's regular session down 2.39% at $39.59. The stock has been trading between $21.91 and $41.14 for the past 52 weeks.