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Bristol-Myers (BMY) Beats on Q1 Earnings, Ups 2017 View
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Bristol-Myers Squibb Company’s (BMY - Free Report) first-quarter 2017 earnings of 84 cents per share beat the Zacks Consensus Estimate of 72 cents and surged 14% from the year-ago period. We note that the bottom-line was boosted by an 18 cent contribution from the patent-infringement litigation settlement related to Merck’s (MRK - Free Report) PD-1 antibody Keytruda.
Total revenue of $4.93 billion increased 12% year over year and was also above the Zacks Consensus Estimate of $4.78 billion. Strong sales of Opdivo and Eliquis drove the top line in the reported quarter.
Shares of Bristol-Myers were trading up in pre-market trading in response to the strong results. However, we note that Bristol-Myers have shares declined 8.1% so far this year, which compares unfavorably with the Zacks classified Large Cap Pharmaceuticals industry’s increase of 5.9%.
Quarterly Details
Revenues were up 13% year over year, when adjusted for foreign exchange impact. Revenues in the U.S. increased 8% to $2.7 billion and increased 18% outside the U.S. Ex-US revenues were up 20%, when adjusted for foreign exchange impact.
Leukemia drug Sprycel raked in sales of $463 million, up 14%. Melanoma drug Yervoy contributed $330 million to the top line during the reported quarter, up 25%.
Opdivo, which is approved for multiple cancer indications, generated revenues of $1.13 billion,up 60% from the year-ago period.
However, the performance of key drugs in the Virology unit was disappointing. Sales of Baraclude declined 3% to $282 million. The Reyataz and Sustiva franchises deteriorated 13% and 33% year over year to $193 million and $184 million, respectively.
Nevertheless, sales of Eliquis were $1.1billion during the reported quarter, up 50% y/y. Bristol-Myers has a partnership with Pfizer Inc. (PFE - Free Report) for Eliquis. Bristol-Myers’ HCV franchise contributed $162 million to its top line, down 62%. Orencia revenues were up 13% to $535 million.
Multiple myeloma drug, Empliciti recorded sales of $53 million, up 12.8% sequentially.
Research and development (R&D) expenses in the quarter increased 13% to $1.3 billion while marketing, selling and administrative expenses rose1% to $1.1 billion.
Gross margin was 74.5% in the quarter, compared with 76% in the year-ago quarter.
In Feb 2017, the company repurchased its common stock worth $2 billion under an accelerated share repurchase (ASR) agreements. The ASR funding was done through a combination of debt and cash as a part of the company’s existing share repurchase authorization.
2017 Earnings Guidance Raised
Bristol-Myers has raised its earnings expectations for 2017. The company now projects earnings in the range of $2.85 to $3.00 per share (old guidance: $2.70 to $2.90). The Zacks Consensus Estimate for earnings stands at $2.80.
Bristol-Myers Squibb Company Price and EPS Surprise
Bristol-Myers delivered yet another strong quarter with the top and the bottom line beating expectations. Robust sales of drugs like Opdivo, Eliquis and Yervoy in the quarter drove the top line. The =increase in 2017 guidance was also encourgaing. Meanwhile, we are positive on Bristol-Myers’ efforts to develop its pipeline.
Earnings estimates for Corcept have remainedstable at 3 cents for the first quarter of and increased 3.8% to 27 cents for FY17 over the last 60 days.
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Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
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Bristol-Myers (BMY) Beats on Q1 Earnings, Ups 2017 View
Bristol-Myers Squibb Company’s (BMY - Free Report) first-quarter 2017 earnings of 84 cents per share beat the Zacks Consensus Estimate of 72 cents and surged 14% from the year-ago period. We note that the bottom-line was boosted by an 18 cent contribution from the patent-infringement litigation settlement related to Merck’s (MRK - Free Report) PD-1 antibody Keytruda.
Total revenue of $4.93 billion increased 12% year over year and was also above the Zacks Consensus Estimate of $4.78 billion. Strong sales of Opdivo and Eliquis drove the top line in the reported quarter.
Shares of Bristol-Myers were trading up in pre-market trading in response to the strong results. However, we note that Bristol-Myers have shares declined 8.1% so far this year, which compares unfavorably with the Zacks classified Large Cap Pharmaceuticals industry’s increase of 5.9%.
Quarterly Details
Revenues were up 13% year over year, when adjusted for foreign exchange impact. Revenues in the U.S. increased 8% to $2.7 billion and increased 18% outside the U.S. Ex-US revenues were up 20%, when adjusted for foreign exchange impact.
Leukemia drug Sprycel raked in sales of $463 million, up 14%. Melanoma drug Yervoy contributed $330 million to the top line during the reported quarter, up 25%.
Opdivo, which is approved for multiple cancer indications, generated revenues of $1.13 billion,up 60% from the year-ago period.
However, the performance of key drugs in the Virology unit was disappointing. Sales of Baraclude declined 3% to $282 million. The Reyataz and Sustiva franchises deteriorated 13% and 33% year over year to $193 million and $184 million, respectively.
Nevertheless, sales of Eliquis were $1.1billion during the reported quarter, up 50% y/y. Bristol-Myers has a partnership with Pfizer Inc. (PFE - Free Report) for Eliquis. Bristol-Myers’ HCV franchise contributed $162 million to its top line, down 62%. Orencia revenues were up 13% to $535 million.
Multiple myeloma drug, Empliciti recorded sales of $53 million, up 12.8% sequentially.
Research and development (R&D) expenses in the quarter increased 13% to $1.3 billion while marketing, selling and administrative expenses rose1% to $1.1 billion.
Gross margin was 74.5% in the quarter, compared with 76% in the year-ago quarter.
In Feb 2017, the company repurchased its common stock worth $2 billion under an accelerated share repurchase (ASR) agreements. The ASR funding was done through a combination of debt and cash as a part of the company’s existing share repurchase authorization.
2017 Earnings Guidance Raised
Bristol-Myers has raised its earnings expectations for 2017. The company now projects earnings in the range of $2.85 to $3.00 per share (old guidance: $2.70 to $2.90). The Zacks Consensus Estimate for earnings stands at $2.80.
Bristol-Myers Squibb Company Price and EPS Surprise
Bristol-Myers Squibb Company Price and EPS Surprise | Bristol-Myers Squibb Company Quote
Our Take
Bristol-Myers delivered yet another strong quarter with the top and the bottom line beating expectations. Robust sales of drugs like Opdivo, Eliquis and Yervoy in the quarter drove the top line. The =increase in 2017 guidance was also encourgaing. Meanwhile, we are positive on Bristol-Myers’ efforts to develop its pipeline.
Bristol-Myers carries a Zacks Rank #3 (Hold). A better-ranked stock in the health care sector is Corcept Therapeutics Inc. (CORT - Free Report) . Corcept carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings estimates for Corcept have remainedstable at 3 cents for the first quarter of and increased 3.8% to 27 cents for FY17 over the last 60 days.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>