Bristol-Myers Squibb Co.

Bristol-Myers Squibb Co. (BMY - Analyst Report) has been outperforming the Dow Jones ($DJI), S&P 500 (SPX) and NASDAQ (COMP) after posting a strong third quarter. The company offers a rewarding dividend yield of 5.8%, while its industry peers pay no income. BMY’s earnings per share are expected to grow by 25% over the next 3 – 5 year, which compares favorably to the industry average of 18%.

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. The Nutritional segment, through its subsidiary Mead Johnson, develops infant formulas like Enfamil, as well as other nutritional products. 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.

A Strong Quarter

The company reported third-quarter results in late October. Earnings per share of 46 cents topped the consensus estimate by 9.5% and came in ahead of the year-prior result.

Management said the company continues to demonstrate strong performance in the marketplace, adding that BMY is moving forward to attain its goals, both commercially and with the advancement of a new product pipeline. “The strength of our balance sheet and cash position enables us to execute our strategy, including our ongoing business development activity," said James M. Cornelius, chairman and chief executive officer.

Bristol-Myers has been outperforming the market on the strong third quarter.

Higher Estimates

Analysts are calling for 2008 earnings of $1.69 per share, up from the two months-ago level of $1.66. This forecast represents a 23% increase over last year’s earnings. For 2009, analysts are projection earnings of $2.00 per share, which was upped from the two months-ago level of $1.98.

Favorable Industry Comparisons

The company pays an annual dividend of $1.24 per share, which translates into a rewarding dividend yield of 5.8%, while BMY’s industry peers pay no income. BMY’s earnings per share are expected to grow by 25% over the next 3 – 5 year, which compares favorably to the industry average of 18%.