Shares of Gilead Sciences (GILD) have dropped in after-hours trading following the release of disappointing earnings driven primarily by Affordable Care Act-related costs.
Paul Sakuma Gilead reported a profit of $1.84 a share not including special items, missing forecasts for $1.92 a share, on sales of $6.04 billion, topping estimates for $5.98 billion. Those aforementioned Affordable Care Act-related costs knocked 21 cents off of earnings. Sales of Gilead’s Hepatitis-C treatment Sovaldi plunged 20% during the third quarter as patients waited for the FDA to approve Harvoni.
None of that appears terribly disappointing, so why have Gilead’s shares dropped 2.4% to $110.70 at 5:30 p.m.? I asked ISI Group’s Mark Schoenebaum that very question and his succinct reply: “b/c no upside surprises.”
With Gilead trading within spitting distance of its 52-week high, that’s more than enough reason.
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