Gilead Sciences Inc. (GILD) - Get Report shares fell 3.4% to close at $67.68 in trading Tuesday after the company reported fourth-quarter earnings that declined from the same period last year as sales of its signature hepatitis C treatments slid.
The Foster City, Calif.-based company reported a fourth-quarter profit of $1.44 per share in the quarter, missing analysts' expectations of $1.70. Revenue of $5.8 billion came in ahead of Wall Street's $5.5 billion expectations.
For fiscal 2019, the company also projected basically flat sales between $21.3 billion and $21.8 billion after generating $22.1 billion in 2018 and $26.1 billion in 2017.
Fourth-quarter product sales fell to $5.7 million from $5.8 billion in 2017. The decline was mostly due to a more than 50% decline in sales of its chronic hepatitis C treatments, Epclusa, Harvoni, Vosevi and Sovaldi. During the fourth quarter last year, the group of treatments brought in $1.5 billion. This year that total was $738 million.
The company also reported a sharp decline in fourth-quarter gross margins, which fell to 77.9% this year after being at 83.5% last year.
Gilead's HIV drug segment did see an uptick in sales, to $4.1 billion from $3.4 billion.
Separately, the company announced that it boosted its quarterly dividend by 11% to 63 cents per share. The dividend is payable March 28, to shareholders of record on March 15.
Also putting pressure on the stock Tuesday is a report that new CEO Daniel O'Day has not shown up for work nearly two months after being named Gilead CEO in December due to commitments with Roche, his previous employer. Those commitments don't expire until March.