Gilead Sciences Inc. reported a year-over-year drop in profit and product sales for the fourth quarter of 2017.
Fourth-quarter non-GAAP net income was $2.34 billion, or $1.78 per share, down from $3.59 billion, or $2.70 per share, in the year-ago period.
The S&P Capital IQ consensus normalized EPS estimate for the quarter was $1.67.
GAAP net loss attributable to the biotechnology company was $3.87 billion, or $2.96 per share, compared with net income of $3.11 billion, or $2.34 per share, in the same quarter of 2016.
The net loss for the fourth quarter includes an estimated $5.5 billion charge related to the new U.S. tax law.
Total revenue for the quarter fell to $5.95 billion from $7.32 billion. Product sales declined to $5.84 billion from $7.22 billion from the same period in 2016.
Product sales were $4.1 billion in the U.S., $1.1 billion in Europe and $553 million in other locations, versus $4.9 billion in the U.S., $1.4 billion in Europe and $870 million in other locations, respectively, in the fourth quarter of 2016.
Full-year results
For full-year 2017, the drugmaker posted a non-GAAP net income of $11.65 billion, or $8.84 per share, down from $15.71 billion, or $11.57 per share, in 2016.
The S&P Capital IQ consensus normalized EPS estimate for the year was $8.70.
Net income attributable to Gilead fell to $4.63 billion, or $3.51 per share, from $13.50 billion, or $9.94 per share, in 2016.
Full-year revenue totaled $26.11 billion, versus $30.39 billion from the year-ago period.
Outlook and dividend hike
For full year 2018, the drugmaker forecast product sales of $20 billion to $21 billion. The company also estimated a 2018 tax rate of 21% to 23%.
In a separate statement, the California-based company authorized a 10% increase in its quarterly dividend to 57 cents, beginning in the first quarter of 2018.
The dividend is payable March 29 to shareholders of record as of March 16.
