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Bristol-Myers Squibb Company (BMY - Free Report) reported better-than-expected results for the fourth quarter of 2022. The company reported adjusted earnings per share of $1.82, which beat the Zacks Consensus Estimate of $1.71 and our estimate of $1.66 but was down from the $1.84 reported in the year-ago quarter.
Total revenues of $11.4 billion surpassed the Zacks Consensus Estimate and our estimate of $11.1 billion but decreased 5% from the year-ago period due to generic competition for multiple myeloma (MM) drug, Revlimid and foreign exchange impacts, partially offset by in-line products (primarily Opdivo) and new product portfolios (primarily Opdualag and Abecma).
Shares are up in pre-market trading.
The company’s shares have gained 14.3% in the past year against the industry's decline of 3.6%.
Image Source: Zacks Investment Research
Quarterly Details
Revenues increased 5% to $7.9 billion in the United States. However, revenues were down 22% outside the country due to lower demand for Revlimid as a result of generic erosion.
Revenues from in-line and new product portfolios increased 7% (12% when adjusted for foreign exchange impacts) to $8.9 billion.
Total in-line product revenues came in at $8.3 billion, up 4% from the year-ago quarter. The Zacks Consensus Estimate and our estimate for the same was $8.7 billion. Within this segment, Eliquis’ sales increased 1% to $2.7 billion. Revenues in international markets were impacted by foreign exchange impacts and lower average net selling prices. We note that Bristol-Myers has a collaboration agreement with Pfizer (PFE - Free Report) for Eliquis.
The companies collaborated in 2007. Profits and losses are shared equally on a global basis, except in certain countries where Pfizer commercializes Eliquis and pays BMY a sales-based fee.
Sales of the immuno-oncology drug Opdivo, approved for multiple cancer indications, were up 11% year over year to $2.19 billion. The Zacks Consensus Estimate and our estimate was pegged at $2.2 billion. The label expansion of the drug boosted sales, driven by newer metastatic and adjuvant indications, partially offset by declining second-line eligibility across tumors and increased competition.
Another MM drug, Pomalyst, generated sales of $877 million, up 3% year over year.
Sales of the rheumatoid arthritis drug, Orencia, grew 6% to $913 million.
The leukemia drug Sprycel raked in sales of $578 million, up 4% year over year.
Melanoma drug Yervoy contributed $568 million to the top line, up 4%.
New product portfolio revenues grew 83% to $645 million, driven by higher demand for Reblozyl (up 32% to $199 million), Abecma ($125 million), Opdualag ($104 million) and Zeposia ($79 million).
However, Revlimid revenues declined 32% to $2.3 billion from the year-ago quarter due to lower demand as a result of generic erosion. The Zacks Consensus Estimate for the same was $1.8 billion. Abraxane revenues declined 41% due to the entry of authorized generics.
Adjusted research and development expenses were flat at $2.5 billion in the quarter. Adjusted marketing, selling and administrative expenses decreased 4%. Gross margin fell to 77.9% from 80.3% in the quarter.
2022 Results
Revenues in 2022 came in at $46.1 billion compared to $46.4 billion in 2021 and surpassed the Zacks Consensus Estimate of $45.9 billion. Earnings per share (adjusted) came in at $7.70, up from $7.16 in 2021 and topping the Zacks Consensus Estimate of $7.61.
2023 Guidance
Bristol-Myers expects adjusted earnings of $7.95-$8.25 per share in 2023. Revenues are anticipated to increase by approximately 2% at reported rates and approximately 2% excluding foreign exchange. The Zacks Consensus Estimate for earnings is pegged at $7.90 per share on revenues of $47.1 billion. Revlimid sales are expected to be $6.5 billion.
Our Take
Bristol-Myers beat fourth-quarter estimates for earnings and revenues. Sales, however, declined year over year due to generic competition for Revlimid. Nevertheless, the approval of new drugs adds a new stream of revenues, which should boost growth in the coming quarters. Pipeline progress has been impressive and strategic collaborations will further expand the portfolio.
Over the past 30 days, earnings estimates for NVO for 2023 have gained 15 cents to $4.18. NVO topped earnings estimates in three of the last four quarters and has a four-quarter earnings surprise of 3.09%, on average.
Over the past 60 days, earnings estimates for Sanofi have increased to $4.25 from $4.41 for 2023. SNY also surpassed estimates in two of the trailing four quarters, with the average surprise being 9.50.
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Bristol-Myers (BMY) Q4 Earnings Top, Revlimid Generic Impact Sales
Bristol-Myers Squibb Company (BMY - Free Report) reported better-than-expected results for the fourth quarter of 2022. The company reported adjusted earnings per share of $1.82, which beat the Zacks Consensus Estimate of $1.71 and our estimate of $1.66 but was down from the $1.84 reported in the year-ago quarter.
Total revenues of $11.4 billion surpassed the Zacks Consensus Estimate and our estimate of $11.1 billion but decreased 5% from the year-ago period due to generic competition for multiple myeloma (MM) drug, Revlimid and foreign exchange impacts, partially offset by in-line products (primarily Opdivo) and new product portfolios (primarily Opdualag and Abecma).
Shares are up in pre-market trading.
The company’s shares have gained 14.3% in the past year against the industry's decline of 3.6%.
Image Source: Zacks Investment Research
Quarterly Details
Revenues increased 5% to $7.9 billion in the United States. However, revenues were down 22% outside the country due to lower demand for Revlimid as a result of generic erosion.
Revenues from in-line and new product portfolios increased 7% (12% when adjusted for foreign exchange impacts) to $8.9 billion.
Total in-line product revenues came in at $8.3 billion, up 4% from the year-ago quarter. The Zacks Consensus Estimate and our estimate for the same was $8.7 billion. Within this segment, Eliquis’ sales increased 1% to $2.7 billion. Revenues in international markets were impacted by foreign exchange impacts and lower average net selling prices. We note that Bristol-Myers has a collaboration agreement with Pfizer (PFE - Free Report) for Eliquis.
The companies collaborated in 2007. Profits and losses are shared equally on a global basis, except in certain countries where Pfizer commercializes Eliquis and pays BMY a sales-based fee.
Sales of the immuno-oncology drug Opdivo, approved for multiple cancer indications, were up 11% year over year to $2.19 billion. The Zacks Consensus Estimate and our estimate was pegged at $2.2 billion. The label expansion of the drug boosted sales, driven by newer metastatic and adjuvant indications, partially offset by declining second-line eligibility across tumors and increased competition.
Another MM drug, Pomalyst, generated sales of $877 million, up 3% year over year.
Sales of the rheumatoid arthritis drug, Orencia, grew 6% to $913 million.
The leukemia drug Sprycel raked in sales of $578 million, up 4% year over year.
Melanoma drug Yervoy contributed $568 million to the top line, up 4%.
New product portfolio revenues grew 83% to $645 million, driven by higher demand for Reblozyl (up 32% to $199 million), Abecma ($125 million), Opdualag ($104 million) and Zeposia ($79 million).
However, Revlimid revenues declined 32% to $2.3 billion from the year-ago quarter due to lower demand as a result of generic erosion. The Zacks Consensus Estimate for the same was $1.8 billion. Abraxane revenues declined 41% due to the entry of authorized generics.
Adjusted research and development expenses were flat at $2.5 billion in the quarter. Adjusted marketing, selling and administrative expenses decreased 4%. Gross margin fell to 77.9% from 80.3% in the quarter.
2022 Results
Revenues in 2022 came in at $46.1 billion compared to $46.4 billion in 2021 and surpassed the Zacks Consensus Estimate of $45.9 billion. Earnings per share (adjusted) came in at $7.70, up from $7.16 in 2021 and topping the Zacks Consensus Estimate of $7.61.
2023 Guidance
Bristol-Myers expects adjusted earnings of $7.95-$8.25 per share in 2023. Revenues are anticipated to increase by approximately 2% at reported rates and approximately 2% excluding foreign exchange. The Zacks Consensus Estimate for earnings is pegged at $7.90 per share on revenues of $47.1 billion. Revlimid sales are expected to be $6.5 billion.
Our Take
Bristol-Myers beat fourth-quarter estimates for earnings and revenues. Sales, however, declined year over year due to generic competition for Revlimid. Nevertheless, the approval of new drugs adds a new stream of revenues, which should boost growth in the coming quarters. Pipeline progress has been impressive and strategic collaborations will further expand the portfolio.
Bristol-Myers currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the healthcare sector are Novo Nordisk (NVO - Free Report) and Sanofi (SNY - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Over the past 30 days, earnings estimates for NVO for 2023 have gained 15 cents to $4.18. NVO topped earnings estimates in three of the last four quarters and has a four-quarter earnings surprise of 3.09%, on average.
Over the past 60 days, earnings estimates for Sanofi have increased to $4.25 from $4.41 for 2023. SNY also surpassed estimates in two of the trailing four quarters, with the average surprise being 9.50.