Earnings for Stryker and Gilead Sciences

After the bell, we had earnings reports from Stryker (SYK) and Gilead Sciences (GILD).

For Q4, Stryker earned 93 cents per share which was two cents ahead of expectations. Revenues rose 9% to $1.99 billion. This was a very solid quarter for SYK. I really like this stock.

For the year, Stryker earned $3.33 per share. Stryker recently said that it expects EPS for this year to range from $3.65 to $3.73. The stock is down about 1.5% after-hours.

Gilead earned 95 cents per share after charges which was a penny ahead of expectations. For all of 2010, Gilead earned $3.32 per share on sales of $7.39 billion. The AP has some details:

The company said revenue from its antiviral drugs rose 5 percent to $1.7 billion during the quarter. Sales of its three-in-one HIV drug Atripla grew 11 percent to $775.2 million, while sales of Truvada increased 2 percent to $681.7 million and sales of the HIV and hepatitis B drug Viread rose 7 percent to $191.1 million.

Revenue from Gilead’s pulmonary arterial hypertension drug Letairis increased 23 percent to $64 million, and sales of its chronic angina drug Ranexa climbed 47 percent to $67.8 million. Sales of its other products dipped 6 percent to $150.4 million. Royalty, contract, and other revenue plunged 70 percent to $68.5 million. That was mostly because of the sharp drop in sales of the flu treatment Tamiflu compared to last year. Swiss drugmaker Roche pays royalties to Gilead on sales of the drug.

Tamiflu royalty payments fell 89 percent to $21.9 million.

Gilead also announced Tuesday that the Food and Drug Administration did not accept its application for approval of a new HIV therapy. The drug, which Gilead developed with Tibotec Pharmaceuticals, is a single tablet combining Truvada with Tibotec’s drug candidate rilpivirine.

Gilead said the FDA wants more information, which the company plans to provide by the end of this quarter.

After hours, the shares are down $1.06 or 2.78%. Wall Street currently expects Gilead to earn $4.06 per share next year which gives GILD a forward P/E of 9.4.

Posted by on January 25th, 2011 at 9:34 pm


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