Shares of Gilead Sciences (NASDAQ: GILD) were jumping 7.9% higher on Wednesday at 11:34 a.m. The solid gain came after the big biotech company announced its 2024 fourth-quarter and full-year financial results following market close on Tuesday.
Gilead reported fourth-quarter revenue of $7.6 billion, up 6% year over year. It posted earnings per share (EPS) of $1.42 based on generally accepted accounting principles (GAAP), reflecting a year-over-year increase of roughly 25%. The company's non-GAAP (adjusted) EPS rose roughly 10.5% year over year to $1.90, handily beating the consensus Wall Street estimate of $1.70 per share.
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Investors had even more to cheer about with Gilead's Q4 update. The company provided upbeat full-year 2025 guidance. Gilead expects significantly higher earnings, projecting non-GAAP diluted EPS of between $7.70 and $8.10, compared to $4.62 for full-year 2024. The acquisition of CymaBay and higher income tax expense weighed on earnings last year.
Gilead could also have a twice-yearly version of Sunlenca (lenacapavir) on the way. It has completed regulatory filings in the U.S. and Europe for the HIV drug. Science magazine named lenacapavir its "Breakthrough of the Year" for 2024.
Is Gilead Sciences stock a buy?
I don't think Gilead Sciences is a good stock for growth investors. Although the biotech company's earnings should jump this year, its revenue is likely to decline slightly.
On the other hand, income and value investors could like Gilead. The company just announced a dividend increase of 2.6%, bringing its forward dividend yield to nearly 3%. Gilead's valuation also looks attractive, with shares trading at only 12.8 times forward earnings.
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Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Gilead Sciences. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
