Yesterday after the close, Gilead Sciences (GILD) reported their 4Q 2016 and FY 2016 financial results. This report was a classic good news / bad news story. The good news? Gilead beat expectations. Analysts expected revenues of $6.72 billion and the company generated revenues of $7.32 billion; a 9% beat. Earnings expectations were for $2.23/eps. The company reported $2.34, a 5% beat. The table below summarizes those results. Note that both sales and profits represent year on year declines from 2015. Investors expected revenue challenges, as management had previously warned that its Hep C drugs were in revenue decline. Falling revenue and profits are the reasons the stock was trading at a PE of 7 based on trailing earnings.
