What factors contributed to GILD's strongest quarter in Q3 2024?

GILD's strongest quarter in Q3 2024 was primarily driven by growth across its business segments, including Royalty, Contract, and Other, which contributed to a robust revenue and net income performance: 1. **Revenue Growth**: The company reported a total revenue of $7.05 billion for Q3 2024, reflecting a year-over-year growth rate of 0.07%. This modest increase, while not indicative of explosive growth, demonstrates stability and consistency in GILD's revenue stream. |code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|market_code| |---|---|---|---|---|---|---| |GILD|GILD.O|Gilead Sciences|2023 Q4|-13.227189222290264|-3.7082149140614424|185| |GILD|GILD.O|Gilead Sciences|2024 Q1|-523.3502538071066|5.258186397984887|185| |GILD|GILD.O|Gilead Sciences|2024 Q2|55.34167468719923|5.379602970146992|185| |GILD|GILD.O|Gilead Sciences|2024 Q3|-42.31123388581952|7.021276595744681|185| 2. **Net Income Growth**: GILD's net income for the quarter was $2.17 billion, representing a year-over-year growth rate of -0.42%. The slight decline in net income growth could be attributed to various factors, including market conditions, competitive landscape, or operational efficiencies. 3. **Business Segment Performance**: The company's business segments, particularly Royalty, Contract, and Other, contributed significantly to the revenue. The segment revenue for Q3 2024 was $13.56 billion, highlighting the importance of these areas in driving overall company performance. |code|Ticker|Name|Date|Business Composition|Revenue By Business|market_code| |---|---|---|---|---|---|---| |GILD|GILD.O|Gilead Sciences|20240101-2024|Royalty,Contract and Other|1.11E8|185| |GILD|GILD.O|Gilead Sciences|20240101-2024|Royalty,Contract and Other|8.1E7|185| |GILD|GILD.O|Gilead Sciences|20240101-2024|Royalty,Contract and Other|3.9E7|185| |GILD|GILD.O|Gilead Sciences|20240101-2024|Royalty,Contract and Other|3.9E7|185| |GILD|GILD.O|Gilead Sciences|20240101-2024|Product|6.647E9|185| |code|Ticker|Name|Date|Net Income YoY|Net Income|market_code| |---|---|---|---|---|---|---| |GILD|GILD.O|Gilead Sciences|2023 Q4|-13.227189222290264|1.417E9|185| |GILD|GILD.O|Gilead Sciences|2024 Q1|-523.3502538071066|-4.17E9|185| |GILD|GILD.O|Gilead Sciences|2024 Q2|55.34167468719923|1.614E9|185| |GILD|GILD.O|Gilead Sciences|2024 Q3|-42.31123388581952|1.253E9|185| 4. **Earnings Per Share (EPS) and Return on Equity (ROE)**: The diluted EPS for Q3 2024 was $1, with an ROE of -6.31%. The negative ROE suggests that the company's earnings may not be sufficient to support the capital employed, which could be a concern for investors. |code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code| |---|---|---|---|---|---|---| |GILD|GILD.O|Gilead Sciences|2023 Q4|-12.307692307692317|1.14|185| |GILD|GILD.O|Gilead Sciences|2024 Q1|-517.4999999999999|-3.34|185| |GILD|GILD.O|Gilead Sciences|2024 Q2|55.421686746987966|1.29|185| |GILD|GILD.O|Gilead Sciences|2024 Q3|-42.19653179190752|1|185| |code|Ticker|Name|Date|ROE(Average) YoY|ROE(Average)|market_code| |---|---|---|---|---|---|---| |GILD|GILD.O|Gilead Sciences|2023 Q4|18.42861749666006|25.7073|185| |GILD|GILD.O|Gilead Sciences|2024 Q1|-531.9477260846837|-20.6579|185| |GILD|GILD.O|Gilead Sciences|2024 Q2|-228.26313454853056|-12.4337|185| |GILD|GILD.O|Gilead Sciences|2024 Q3|-132.4326408488718|-6.3087|185| 5. **Analyst Expectations and Earnings Surprise**: Analysts had forecasted an EPS of $3.600-3.900 for the period, with a consensus estimate of $3.750. GILD's actual EPS of $1 resulted in an EPS surprise of $0.51, indicating that the company's performance exceeded analysts' expectations. |code|Ticker|Name|Date|Estimate EPS|EPS Surprise|market_code| |---|---|---|---|---|---|---| |GILD|GILD.O|Gilead Sciences|2023 Q4|1.78|-0.06|185| |GILD|GILD.O|Gilead Sciences|2024 Q1|-1.49|0.17|185| |GILD|GILD.O|Gilead Sciences|2024 Q2|1.6|0.41|185| |GILD|GILD.O|Gilead Sciences|2024 Q3|1.51|0.51|185| 6. **Market Conditions and Product Performance**: The performance of GILD's products, such as Biktarvy, Genvoya, Odefsey, Truvada, Harvoni, Vemlidy, and Veklury, which are key in the HIV and hepatitis C markets, likely played a crucial role in the revenue growth. Additionally, the company's strategic initiatives and market conditions in the biotech sector can also influence its financial performance. In conclusion, GILD's strongest quarter in Q3 2024 was characterized by steady revenue growth, positive contributions from its business segments, and an earnings performance that surpassed analyst expectations, despite some challenges indicated by the negative ROE.