NovoCure (NVCR) and Gilead (GILD) both reported earnings yesterday.
NovoCure shares were up 12% after the company reported quarterly net revenues of $115.9 million, representing 34% growth versus the second quarter 2019 and 14% growth versus the first quarter of 2020. In Greater China, net revenues grew 97% growth compared to the same period in 2019.
Net income for the quarter was positive – $1.7 million, compared to a net loss of $1.3 million for the same period in 2019. At the close of the quarter, the company had $346.7 million in cash, cash equivalents and short-term investments.
Overall, a very solid quarter for NovoCure, and this new position to the Explorer portfolio remains a Buy.
Gilead didn’t fare quite so well, though there were plenty of bright spots. GILD shares slipped 0.93% after the company reported non-GAAP earnings of $1.11 a share for the second quarter, below consensus estimate of $1.45. Sales were $5.1 billion for the quarter, below the $5.7 billion the company reported in the same quarter last year.
On the positive side, Gilead increased its earnings guidance for 2020, saying it now expects sales of between $23 billion and $25 billion, up from its original estimate of $22 billion. It expects earnings per share of between $6.25 and $7.65, up from its earlier estimate of between $6.05 and $6.45.
Finally, Gilead said that it had delivered the last of the 1.5 million doses of remdesivir it plans to donate to governments at the end of the second quarter. It is now charging $390 a vial to developed countries, and $520 a vial to U.S. private insurance companies. It reported no revenue from remdesivir for the second quarter.
All in all, a good quarter with improved guidance for the year and it is important to note the goodwill created by the donations of remdesivir and that sales and income will now begin to flow. GILD remains a Buy.