Why Gilead Sciences Stock Slipped Today
Gilead Sciences (NASDAQ: GILD) didn't have a bad first quarter, but investors didn't find it inspiring either. After publishing its earnings report after market close Thursday, the company saw its share price decline in excess of 2% the following day. That contrasted unfavorably with the 0.6% rise of the S&P 500 index that trading session.
For the period, Gilead's revenue clocked in at $6.67 billion, essentially flat over the same quarter of 2024. The company attributed this to sales declines of COVID drug Veklury and oncology products. This was offset by improvements in liver disease and human immunodeficiency virus (HIV) medications.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
As for profitability, Gilead flipped to a non-GAAP (adjusted) net income of just under $2.3 billion, or $1.81 per share, from the year-ago loss of $1.6 billion. The first quarter 2024 result was affected by the acquisition of liver disease drug developer CymaBay Therapeutics, the company said, plus a $2.4 billion impairment related to a 2020 deal for a peer, Immunomedics.
This meant a mixed quarter for Gilead. On average, analysts were modeling $6.78 billion for revenue, but anticipating a lower per-share adjusted profit of $1.77.
Gilead also made an adjustment to its existing, full-year guidance that made some investors unhappy. For the entirety of 2025 it's expecting headline earnings per share to land at $5.65 to $6.05, where previously it had forecast $5.95 to $6.35. However, it left its adjusted profitability estimate unchanged at $7.70 to $8.10 per share. Revenue is still expected to come in at $28.2 billion to $28.6 billion.
Before you buy stock in Gilead Sciences, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Gilead Sciences wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $591,533!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $652,319!*
Now, it's worth noting Stock Advisor's total average return is 859% — a market-crushing outperformance compared to 158% for the S&P 500. Don't miss out on the latest top 10 list, available when you join .
See the 10 stocks »
*Stock Advisor returns as of April 21, 2025
Eric Volkman 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.
Why Gilead Sciences Stock Slipped Today was originally published by The Motley Fool
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
9 minutes ago
- Yahoo
‘The market is as clueless as the Fed': Why this trader says stocks could continue to do well for months
As traders brace for a fresh round of U.S. inflation data this week, a new twist is developing in the way some are thinking about the likely impact of tariffs and the path that major asset classes could take from here. For Gang Hu, a trader at New York hedge fund WinShore Capital Partners, the conclusion is that stocks can still power higher no matter what this Wednesday's consumer-price index for May shows and despite continuing uncertainty about inflation. That's in contrast to the views held by many market participants through April 8 — when the Dow Jones Industrial Average DJIA, S&P 500 SPX and Nasdaq Composite COMP all fell to 52-week lows just three days after President Donald Trump's 10% baseline tariff on U.S. imports from most countries took effect following months of trade uncertainty. 'It might be another Apple or Microsoft': My wife invested $100K in one stock and it exploded 1,500%. Do we sell? 'The situation is extreme': I'm 65 and leaving my estate to only one grandchild. Can the others contest my will? 'I prepaid our mom's rent for a year': My sister is a millionaire and never helps our mother. How do I cut her out of her will? I bought my mother-in-law a condo — and she took out a $30,000 car loan. Now she refuses to get a roommate. 'He failed in his fiduciary duty': My brother liquidated our mother's 401(k) for her nursing home. He claimed the rest. One big reason for the current shift in thinking is that the full impact of tariffs is taking longer than expected to show up in the final price of goods, and it may take up to three more months for this to play out. Anecdotal information in the Federal Reserve's Beige Book report released last week revealed that, as of May, businesses planned to pass on tariff-related costs by August. This delayed impact from tariffs has since been factored into traders' expectations for the core CPI inflation rate that excludes food and energy, which is seen as likely to peak on a monthly basis in August. Traders of derivatives-like instruments known as fixings are now preparing for the monthly core CPI rate to rise to just over 0.4% in August, up from 0.2% for April, according to Hu's calculations. They expect this rate to then slide back down to below 0.2% for November and December, before inching up toward 0.3% again by next March. However, there's more to this than meets the eye, Hu said, and these numbers don't mean much of anything. 'In reality, the market is as clueless as the Fed,' Hu said via phone on Monday. 'The market is not currently pricing in any second inflationary impact in the form of a wage-inflation spiral, which could happen fast, and the market is not pricing in any recession impact.' What's more, previous fears of a U.S. recession have yet to come to fruition after years of speculation, even though recent data such as last week's jump in unemployment-benefit filings and a contraction in the services sector point to signs of a slowdown. The result is that the stock market has generally stabilized. On Monday, U.S. stocks closed mostly higher as traders awaited details of U.S.-China trade talks being held in London. The S&P 500 and Nasdaq Composite finished the session at their highest levels since February, at 6,005.88 and 19,591.24 respectively, despite lingering questions about the inflationary impacts of tariffs. Also on Monday, analysts at Barclays said signs of stagflation, or the unwelcome mix of slowing economic growth and increasing inflation, have 'crept back' into the data, and this week's inflation report has the potential to show 'the first real evidence of tariff-linked price pressures.' Even so, one-year BX:TMUBMUSD01Y through 30-year BX:TMUBMUSD30Y Treasury yields finished lower after a monthly survey from the Federal Reserve Bank of New York indicated nationwide consumer expectations for inflation had dropped in May. Hu has demonstrated a propensity for being on target with his thinking on inflation. In July 2022, he told MarketWatch that 'inflation is going to be stickier than most people imagine,' which turned out to be the case. Less than a year later, in February 2023, Hu said inflation could easily take more than a year to decline enough for the Fed to cut interest rates. The Fed raised borrowing costs to as high as 5.25%-5.5% in July of that year, then left them unchanged for more than a year before delivering its first rate cut in September 2024. According to Hu, tariffs are a bit of a double-edged sword. They have the potential to either drive the U.S. into a recession or lead to further inflation that keeps the Federal Reserve on hold at a benchmark rate of between 4.25% and 4.5%, creating a fairly wide range of possible outcomes for the economy in the months ahead. An example of just how wide the band of trading can be is illustrated by what has already happened this year: The S&P 500 and Nasdaq Composite reached their year-to-date closing highs of 6,144.15 and 20,056.25, respectively, in February. Less than two months later, on April 8, they fell to their lowest closing levels of the year, at 4,982.77 and 15,267.91. As of Monday, they rose back to their highest closing levels since February. For now, 'the market could be reasonably stable even in the presence of uncertainty,' Hu said. 'Rate-cut expectations could be either too low or too high, and 2025 cuts could easily be zero or 100 basis points in reality. Daily price changes could be very large, and we could go to the top and bottom of ranges very quickly, with few people fading anything in most asset prices. But all in all, prices stay in a range.' He added: 'The million-dollar question is, will there be a secondary impact of the initial inflation shock in the form of a wage-inflation spiral? By September, we should have a decent idea of whether there will be a secondary impact.' Economists polled by the Wall Street Journal expect the May consumer-price index released on Wednesday to produce a 2.5% annual headline rate and 0.3% monthly core rate that are both benign relative to April's data. The producer-price index for the same month, which follows on Thursday, is expected to show a 0.2% increase versus a month-over-month drop of 0.5% in April. My son, 39, will be released from prison in 2030. Do I leave him my $100K life insurance? 20 stocks bucking bad trends on Wall Street — what might be next for them? I have $1,000 in credit-card debt. Will I be able to hide my inheritance from the bank? How do I make sure my son-in-law doesn't get his hands on my daughter's inheritance? 20 stocks of companies that have improved profit margins and are expected to grow quickly Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Hamilton Spectator
27 minutes ago
- Hamilton Spectator
Milton downtown small businesses seek financial support
Milton's downtown core is home to a vibrant business community, with more than 185 businesses operating in the area — approximately 82 per cent of them classified as small businesses, according to the Town of Milton. The Downtown Milton Business Improvement Area (DMBIA) represents more than 220 business operators and property owners, reflecting the area's dynamic and evolving commercial landscape. However, since the COVID-19 pandemic, many local shops have struggled to recover financially. While public spending habits have shifted back to in-person shopping, many residents continue to favour national chains over local downtown businesses — limiting economic recovery for the small business community. Avery Teal, social media co-ordinator at the Milton Chamber of Commerce, said the Chamber has been working to promote local businesses through various media platforms. 'We've been helping small businesses increase their visibility through platforms like Instagram, TikTok and LinkedIn,' Teal said. 'The goal is to bring more attention to the businesses that make Milton unique.' As part of the Chamber's outreach, Dan Rogers, owner of RX Recourse — a corporate fitness and wellness service based downtown — partnered with the Chamber to produce a promotional video. The video, posted to LinkedIn, featured Rogers explaining his services, including 'Team Building 101.' 'The Milton Chamber of Commerce was kind enough to help me build a commercial to briefly explain what I do,' Rogers said in a post. The video served as a tool to boost visibility for RX Recourse within the local community. In addition to the Chamber's efforts, the Milton BIA partnered with Digital Main Street Ontario to launch a Digital Service Squad (DSS). The initiative offered one-on-one support for small businesses looking to improve their digital presence, including website creation and marketing strategy development. Mira Nasser, events manager at the BIA, said the program offered grants of up to $2,500 for digital upgrades. In total, $80,000 in funding was distributed to support 32 businesses in Milton. Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
Yahoo
30 minutes ago
- Yahoo
GitLab Inc (GTLB) Q1 2026 Earnings Call Highlights: Strong Revenue Growth and Strategic AI ...
Revenue: $214.5 million, a 27% increase year-over-year. Non-GAAP Operating Margin: 12.2%, compared to negative 2.3% in the previous year. Adjusted Free Cash Flow: $104.1 million, with a margin of 49%. Non-GAAP Gross Margin: 90% for the quarter. Dollar-Based Net Retention Rate (DBNRR): 122%. Total Annual Recurring Revenue (ARR): 10,104 customers with ARR of at least $5,000. Customers with $100,000+ ARR: Increased 26% year-over-year to 1,288. Guidance for Q2 FY26 Revenue: $226 million to $227 million. Guidance for FY26 Revenue: $936 million to $942 million. Cash and Investments: $1.1 billion at the end of the quarter. Warning! GuruFocus has detected 4 Warning Signs with GTLB. Release Date: June 10, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. GitLab Inc (NASDAQ:GTLB) reported a 27% year-over-year increase in revenue, reaching $215 million for the first quarter. The company achieved a non-GAAP operating margin of 12%, highlighting significant year-over-year operating margin expansion. GitLab Inc (NASDAQ:GTLB) continues to see strong adoption of its AI-native DevSecOps platform, with strategic differentiators like cloud agnosticism and comprehensive solutions across the software development lifecycle. The company launched GitLab 18, introducing new product capabilities that enhance core DevOps, security, and AI functionalities. GitLab Inc (NASDAQ:GTLB) achieved FedRAMP Moderate authorization, which is expected to boost its public sector business with its Dedicated offering. The company's Q1 beat was described as one of the 'skinniest' since its IPO, indicating tighter performance margins. There was a noted deceleration in sequential customer adds, particularly in the $100,000 ARR cohort. GitLab Inc (NASDAQ:GTLB) experienced a back-end weighted linearity in the quarter, which could indicate potential challenges in deal closures. The company faces price sensitivity at the low end of the market, impacting new customer additions. Concerns were raised about the potential impact of AI on job growth in the software developer market, which could affect demand for GitLab's services. Q: How are customer conversations evolving with the rapid advancements in AI, particularly regarding code suggestion and completion? A: Bill Staples, CEO: Every customer conversation touches on AI. Customers are eager to use AI to enhance productivity, innovation, and quality. The market is rapidly evolving with new tools and techniques. Customers often experiment with multiple AI tools, including GitLab Duo, to find the best fit. This experimentation ultimately benefits GitLab, as more code creation leads to increased demand for GitLab's comprehensive platform for testing, validation, and deployment. Q: Can you explain the growth dynamics, given the fiscal Q1 results and the outlook for the year? A: Brian Robins, CFO: The quarter's results were as expected, with a mix favoring SaaS and back-end weighted linearity. The guidance remains unchanged, assuming consistent macroeconomic conditions. The growth in RPO, CRPO, and billings indicates strong underlying demand, despite a slightly narrower beat compared to previous quarters. Q: How is AI adoption affecting job growth in the software developer market, and what are the implications for GitLab? A: Bill Staples, CEO: AI is seen as a productivity enhancer rather than a job threat. Historically, advances in productivity have led to more opportunities. AI will likely increase the number of code creators and the volume of code, benefiting GitLab. Brian Robins, CFO, added that developer hiring is turning positive, and GitLab's market opportunity remains vast. Q: How does GitLab plan to capture value from AI-driven enhancements, given the current pricing model? A: Bill Staples, CEO: GitLab is focusing on creating value through AI by enhancing collaboration between humans and agents, maintaining security and privacy, and leveraging its unified platform for better context and outcomes. The introduction of Duo Chat and code suggestions in Premium and Ultimate tiers is part of a strategy to lower adoption barriers and provide a smooth upgrade path to more advanced AI capabilities. Q: What are the key differentiators in GitLab 18, and why were certain features included without additional charges? A: Bill Staples, CEO: GitLab 18 introduces centralized artifact management, improved CICD pipelines, and enhanced security features. The inclusion of Duo Chat and code suggestions in Premium and Ultimate tiers aims to eliminate adoption barriers and provide a seamless upgrade path. The strategy is to offer a friction-free AI experience, encouraging broader adoption and eventual upgrades to more comprehensive solutions. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
