Bristol Myers' Earnings Beat Sparks Future Growth Optimism

Key Takeaway

• Bristol Myers Squibb (BMY) Q4 earnings beat expectations with net income of $1.762 billion and revenue of $11.477 billion, driven by newer drugs.
• Projected 2024 sales growth in low single digits; adjusted EPS forecast between $7.10 and $7.40 exceeds analysts' estimates.
• Despite strategic acquisitions and product pipeline expansion, BMY shares down 5.2% YTD, underperforming the S&P 500's gain of 2.9%.

Bristol Myers Squibb Co. Reports Fourth-Quarter Earnings, Surpassing Analyst Expectations

Bristol Myers Squibb Co. (BMY) announced its fourth-quarter financial results on Friday, revealing figures that exceeded analysts' forecasts. The pharmaceutical giant reported a net income of $1.762 billion, or 87 cents per share, a decrease from the previous year's $2.022 billion, or 95 cents per share. However, the adjusted earnings per share stood at $1.70, down 7% year-over-year but still surpassing the FactSet consensus of $1.55. The company's revenue for the quarter was $11.477 billion, marking a 1% increase from the previous year and exceeding the FactSet consensus of $11.192 billion.

Looking ahead, Bristol Myers Squibb has projected sales growth in the low single digits for the full year 2024, with adjusted earnings per share expected to be between $7.10 and $7.40, which is ahead of analysts' estimates.

The company's portfolio, including the blood thinner Eliquis and the cancer drug Opdivo, contributed significantly to the quarter's performance. Eliquis sales rose by 7% to $2.87 billion, slightly above analysts' expectations. This growth helped offset the declining sales of the multiple myeloma treatment Revlimid, which fell 36% to $1.45 billion due to generic competition.

Bristol Myers Squibb's newer products also showed strong performance, with sales totaling $1.072 billion in the quarter, a 66% increase from the previous year. This growth was driven by the melanoma treatment Opdualog and the anemia drug Reblozyl. However, sales of the CAR-T cell therapy Abecma decreased by 20% to $100 million.

The company's strategic moves have been in the spotlight, particularly with its recent acquisitions aimed at bolstering its product pipeline. In December, Bristol Myers Squibb announced the acquisition of RayzeBio Inc. and Karuna Therapeutics Inc., the latter of which is developing a promising schizophrenia treatment, KarXT, with a regulatory decision expected in September. Additionally, the company recently completed its acquisition of cancer drugmaker Mirati Therapeutics Inc.

Despite these developments, Bristol Myers Squibb shares have experienced a decline, down 5.2% year to date, in contrast to the S&P 500's gain of 2.9%. This performance comes after a challenging 12 months for the company, with shares dropping more than 30%.

The company's partner on Abecma, 2seventy bio Inc., also made headlines earlier this week by announcing a strategic pivot to focus exclusively on the development and commercialization of cell therapy, alongside the sale of its research-and-development pipeline to Regeneron Pharmaceuticals Inc.

As Bristol Myers Squibb navigates through these changes and challenges, investors and analysts alike are closely watching the company's strategic decisions and their potential impact on its future growth and market position.