Gilead Sciences, Inc. (NASDAQ:GILD) Continues The Falling Streak For Q4 2016; Reports $3.1 Billion Net Income

Gilead Sciences Inc

Gilead Sciences, Inc. (NASDAQ:GILD) hasn’t been able to bring a smile on the investors’ faces throughout the first three quarters of 2016, and in the last quarter as well, the company did not break the ice. Following the downward trend, the company announced its Q4 2016 results recently, and reported $3.1 billion Net income from continuing operations and $2.70 adjusted EPS. For the same duration in 2015, these figures were $4.7 billion and $3.32, respectively; marking a decline of 34% in Net income and 18.7% in EPS on YoY basis.

Everything’s down for Gilead Sciences in Q4 2016

The net income of company has fallen in Q4 2016, sales have fallen and Adjusted EPS too, have dropped. The company’s Q4 2016 sales were $7.3 billion, in comparison to $8.5 billion in Q4 2015, a drop by 14.1% on year over year basis.

The worse part for the shareholders is that the future looks bleak as well. The road ahead isn’t merry because of the rising costs of Gilead’s research and development activities in the fourth quarter of 2016. The cost of R&D for company has soared by almost 60% on YoY basis to $1.2 billion.

Gilead looks for advancing product pipeline; but the financial figures are dropping

The company, of late, has been spending exuberant amounts on product pipeline advancement. At present, it has as many as 28 important clinical studies going on. Among these, ten studies are almost in their final stages with larger scope. The late-stage trials of these studies are compelling the company for expensive R&D.

Meanwhile, the full-year revenue for 2016 is $30.4 billion (down 6.9%) and the full year earnings stood at $13.5 billion (down 25.4%). The company’s cash, at the end of year was $32.4 billion (including cash, marketable securities and cash equivalents).

The only reprise for the shareholders and company can be $16.7 billion in operating cash flow for 2016. Out of this, $11 billion has been used for buying stock, while $2.5 billion is used for paying dividend.

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