Why did GILD's Q3 2024 EPS beat forecasts by a wide margin?

Gilead Sciences' Q3 2024 EPS exceeded forecasts due to strong revenue growth, particularly in the HIV and oncology segments, and effective cost management despite a slight decline in Veklury sales.

1. **Revenue Growth**: Gilead's total revenue increased by 7% year-over-year to $7.55 billion, surpassing analyst estimates. This growth was driven by robust sales in HIV and oncology products. HIV product sales rose by 9%, reaching $5.1 billion, while oncology product sales grew by 6.1% to $816 million. The exceptional performance of the HIV portfolio, including the growth of Biktarvy, and the continued success of oncology treatments like Trodelvy contributed significantly to the revenue outperformance.
2. **Cost Management**: Gilead managed to keep costs under control, which helped maintain profitability. The company's operating expense management was disciplined, allowing it to increase full-year revenue, operating income, and earnings per share guidance.
3. **Veklury Sales**: Although Veklury sales fell by 31% to account for only 10% of total sales, the impact on overall revenue was mitigated by the growth in other segments. Veklury's decline was expected due to the waning impact of COVID-19-related sales, yet it still contributed positively to the quarter's revenue.

In summary, Gilead's EPS beat expectations due to strong revenue growth in key segments, efficient cost management, and the continued success of its leading products despite a decline in one product line.