Bristol Myers Squibb Co.

Bristol Myers Squibb Co. (BMY) boasts a solid record of exceeding analysts’ earnings expectations, missing the consensus estimate only twice in more than 4 years. For the 2009 year, analysts see year-over-year earnings per share growth of 11%. The Street is forecasting earnings growth of 16% for the following year.

Company Description

Bristol-Myers Squibb is a major producer and distributor of pharmaceuticals and other healthcare related products. The Pharmaceutical segment manufactures and sells branded pharmaceutical drugs such as Pravachol for cholesterol reduction, Plavix for hypertension and Erbitux for cancer.

Bristol Myers generates more than 55% of its revenue from the domestic market, and the balance from the international market primarily Europe, the Middle East and Asia.

An IPO

Bristol-Myers feels confident enough, even amid current economic woes, to execute a partial offering of its Mead Johnson Nutrition (MJN) business.

BMY stated that it believes the initial public offering of Mead Johnson will allow Mead Johnson to maximize the value of its brand by implementing growth plans and increasing shareholder value, while also providing Bristol-Myers Squibb with a steady source of profits, cash flow and growth.

BMY Saw Growth in the Fourth Quarter

The company recently announced fourth-quarter net sales from continuing operations of $5.2 billion, an increase of 4%, or 8% excluding foreign exchange impact, on a year-over-year basis.

Earnings per share also surpassed the year-ago level, coming in 12% above analysts’ expectations. BMY topped Wall Street estimates by an average of 8% over the past 4 consecutive quarters.

“In the quarter, and in the past year, we’ve taken decisive action as a BioPharma leader to become leaner and more agile,” said James M. Cornelius, chairman and chief executive officer. “I’m particularly pleased by our global commercial teams in presenting our value proposition to customers and payers. We’ve executed with speed and rigor against our strategy. Results this quarter continued to be strong, capping off an outstanding year.

Bristol-Myers issued a 2009 earnings guidance of $1.85 to $2.00 per share on a non-GAAP basis. Analysts are forecasting $1.94, which translates into 11% annual growth. For 2010, Wall Street projects earnings per share growth of 16%.

The company boasts a solid record of exceeding analysts’ earnings expectations, missing the consensus estimate only twice in more than 4 years.

Favorable Industry Comparisons

Bristol-Myers offers a rewarding dividend yield of 5.7%, while most of BMY’s industry peers pay no income. BMY’s return on equity (ROE) of 31% nearly doubles the industry average of 16%.

Read the full analyst report on BMY