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Bristol-Myers (BMY) Tops on Q2 Earnings, Ups '24 EPS View
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Bristol-Myers Squibb Company (BMY - Free Report) reported an adjusted earnings per share (EPS) of $2.07, which beat the Zacks Consensus Estimate of $1.64. In the year-ago quarter, BMY posted an adjusted EPS of $1.75.
Total revenues of $12.2 billion surpassed the Zacks Consensus Estimate of $11.5 billion. The top line also increased 9% from the year-ago period’s level, primarily driven by strong growth portfolio performance and an increase in Eliquis sales.
BMY’s shares are trading up following the results.
The company’s shares have lost 11.8% year to date compared with the industry's decline of 0.8%.
Image Source: Zacks Investment Research
Quarterly Details
Revenues increased 13% to $8.8 billion in the United States due to higher sales of Eliquis, Reblozyl, Opdivo and Opdualag.
International revenues decreased 1% year over year to $3.4 billion due to generic erosion for the multiple myeloma (MM) drug Revlimid. The negative impact from foreign exchange was 7%.
Growth Portfolio Revenues
Revenues from the Growth portfolio totaled $5.6 billion, up 18% from the year-ago level. Sales grew 21% when adjusted for foreign exchange impacts.
Growth Portfolio revenues were primarily driven by higher demand for Opdivo, Reblozyl, Camzyos and Opdualag, partially offset by a decline in Abecma revenues.
Total sales of the immuno-oncology drug Opdivo, approved for multiple cancer indications, rose 11% year over year to $2.4 billion. The figure beat the Zacks Consensus Estimate and our estimate of $2.3 billion and $2.32 billion, respectively.
Sales of the rheumatoid arthritis drug Orencia increased 2% to $948 million. Melanoma drug Yervoy contributed $630 million to the top line. The figure rose 8% year over year.
Reblozyl sales surged 82% year over year to $425 million. Reblozyl sales beat the Zacks Consensus Estimate and our estimate of $391 million and $367.9 million, respectively.
Opdualag sales jumped 53% to $235 million.
Sales of Zeposia and Breyanzi surged 51% and 53%, respectively, to $151 million and $153 million.
Camzyos and Sotyktu sales totaled $139 million and $53 million, respectively.
Augtyro and Krazati raked in sales of $7 million and $32 million, respectively. However, Abecma sales declined 28% to $95 million.
Legacy Portfolio Revenues
Revenues for the Legacy Portfolio totaled $6.6 billion, up 2% year over year. This was driven by a 7% increase in global sales of blood thinner drug Eliquis.
Eliquis sales of $3.4 billion also beat our model estimate of $3.3 billion and the Zacks Consensus Estimate by 0.66%.
Please 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.
Revlimid revenues declined 8% to $1.35 billion due to lower demand owing to generic erosion. Sales surpassed the Zacks Consensus Estimate of $1.1 billion and our estimate of $933.7 million.
MM drug, Pomalyst, generated sales of $959 million, up 13% year over year. Abraxane revenues declined 10% to $231 million.
Leukemia drug Sprycel generated sales of $424 million, down 7% year over year due to a 39% decline in international sales.
Costs and Margin
Gross margin increased to 75.6% from 75% in the year-ago quarter due to product mix. Adjusted research and development expenses remained relatively flat at $2.3 billion. Adjusted marketing, selling and administrative expenses were also flat at $1.9 billion.
Acquired IPRD decreased to $132 million from $158 million.
2024 Earnings Guidance Raised
Bristol-Myers now expects adjusted earnings to be in the range of $0.60-$0.90 per share in 2024, up from the earlier estimated band of $0.40-$0.70. The Zacks Consensus Estimate for 2024 EPS is pegged at $0.53.
Revenues are anticipated to increase in the upper end of low single-digit range (previous guidance: low single digits).
Recent Acquisitions
The FDA granted accelerated approval to lung cancer drug Krazati, in combination with cetuximab, as a targeted treatment option for adult patients with KRASG12C-mutated locally advanced or metastatic colorectal cancer (CRC), as determined by an FDA-approved test, who have received prior treatment with fluoropyrimidine, oxaliplatin and irinotecan-based chemotherapy.
The regulatory body also granted accelerated approval to Augtyro for the treatment of adult and pediatric patients aged 12 years and older with solid tumors that have a neurotrophic tyrosine receptor kinase (NTRK) gene fusion, are locally advanced or metastatic or where surgical resection is likely to result in severe morbidity, and have progressed following treatment or have no satisfactory alternative therapy.
CAR T cell therapy Breyanzi’s label was expanded in the United States for the indications of follicular lymphoma and mantle cell lymphoma
Our Take
Bristol-Myers reported better-than-expected second-quarter results as growth in Eliquis, Opdivo and Reblozyl drove sales and cost-cutting measures boosted the bottom line.
Bristol Myers Squibb Company Price, Consensus and EPS Surprise
Last quarter, Bristol-Myers announced that it is undertaking a strategic productivity initiative that will drive approximately $1.5 billion in cost savings by the end of 2025.
The strong uptake of new drugs should boost investor sentiment as it offsets the decline in sales of Revlimid.
Zacks Rank & Stocks to Consider
Bristol-Myers currently carries a Zacks Rank #3 (Hold).
Entrada’s loss per share estimate for 2024 has narrowed from 14 cents to 13 cents in the past 60 days, and the same for 2025 has narrowed from $3.44 to $3.21 in the past 30 days.
In the past 60 days, estimates for CORT’s 2024 EPS have improved from 90 to 95 cents. Shares of CORT have rallied 49.2 Shares of CORT have rallied 49.2% in the past three months.
CORT’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 33.7%.
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Bristol-Myers (BMY) Tops on Q2 Earnings, Ups '24 EPS View
Bristol-Myers Squibb Company (BMY - Free Report) reported an adjusted earnings per share (EPS) of $2.07, which beat the Zacks Consensus Estimate of $1.64. In the year-ago quarter, BMY posted an adjusted EPS of $1.75.
Total revenues of $12.2 billion surpassed the Zacks Consensus Estimate of $11.5 billion. The top line also increased 9% from the year-ago period’s level, primarily driven by strong growth portfolio performance and an increase in Eliquis sales.
BMY’s shares are trading up following the results.
The company’s shares have lost 11.8% year to date compared with the industry's decline of 0.8%.
Image Source: Zacks Investment Research
Quarterly Details
Revenues increased 13% to $8.8 billion in the United States due to higher sales of Eliquis, Reblozyl, Opdivo and Opdualag.
International revenues decreased 1% year over year to $3.4 billion due to generic erosion for the multiple myeloma (MM) drug Revlimid. The negative impact from foreign exchange was 7%.
Growth Portfolio Revenues
Revenues from the Growth portfolio totaled $5.6 billion, up 18% from the year-ago level. Sales grew 21% when adjusted for foreign exchange impacts.
Growth Portfolio revenues were primarily driven by higher demand for Opdivo, Reblozyl, Camzyos and Opdualag, partially offset by a decline in Abecma revenues.
Total sales of the immuno-oncology drug Opdivo, approved for multiple cancer indications, rose 11% year over year to $2.4 billion. The figure beat the Zacks Consensus Estimate and our estimate of $2.3 billion and $2.32 billion, respectively.
Sales of the rheumatoid arthritis drug Orencia increased 2% to $948 million.
Melanoma drug Yervoy contributed $630 million to the top line. The figure rose 8% year over year.
Reblozyl sales surged 82% year over year to $425 million. Reblozyl sales beat the Zacks Consensus Estimate and our estimate of $391 million and $367.9 million, respectively.
Opdualag sales jumped 53% to $235 million.
Sales of Zeposia and Breyanzi surged 51% and 53%, respectively, to $151 million and $153 million.
Camzyos and Sotyktu sales totaled $139 million and $53 million, respectively.
Augtyro and Krazati raked in sales of $7 million and $32 million, respectively.
However, Abecma sales declined 28% to $95 million.
Legacy Portfolio Revenues
Revenues for the Legacy Portfolio totaled $6.6 billion, up 2% year over year. This was driven by a 7% increase in global sales of blood thinner drug Eliquis.
Eliquis sales of $3.4 billion also beat our model estimate of $3.3 billion and the Zacks Consensus Estimate by 0.66%.
Please 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.
Revlimid revenues declined 8% to $1.35 billion due to lower demand owing to generic erosion. Sales surpassed the Zacks Consensus Estimate of $1.1 billion and our estimate of $933.7 million.
MM drug, Pomalyst, generated sales of $959 million, up 13% year over year.
Abraxane revenues declined 10% to $231 million.
Leukemia drug Sprycel generated sales of $424 million, down 7% year over year due to a 39% decline in international sales.
Costs and Margin
Gross margin increased to 75.6% from 75% in the year-ago quarter due to product mix. Adjusted research and development expenses remained relatively flat at $2.3 billion. Adjusted marketing, selling and administrative expenses were also flat at $1.9 billion.
Acquired IPRD decreased to $132 million from $158 million.
2024 Earnings Guidance Raised
Bristol-Myers now expects adjusted earnings to be in the range of $0.60-$0.90 per share in 2024, up from the earlier estimated band of $0.40-$0.70. The Zacks Consensus Estimate for 2024 EPS is pegged at $0.53.
Revenues are anticipated to increase in the upper end of low single-digit range (previous guidance: low single digits).
Recent Acquisitions
The FDA granted accelerated approval to lung cancer drug Krazati, in combination with cetuximab, as a targeted treatment option for adult patients with KRASG12C-mutated locally advanced or metastatic colorectal cancer (CRC), as determined by an FDA-approved test, who have received prior treatment with fluoropyrimidine, oxaliplatin and irinotecan-based chemotherapy.
The regulatory body also granted accelerated approval to Augtyro for the treatment of adult and pediatric patients aged 12 years and older with solid tumors that have a neurotrophic tyrosine receptor kinase (NTRK) gene fusion, are locally advanced or metastatic or where surgical resection is likely to result in severe morbidity, and have progressed following treatment or have no satisfactory alternative therapy.
CAR T cell therapy Breyanzi’s label was expanded in the United States for the indications of follicular lymphoma and mantle cell lymphoma
Our Take
Bristol-Myers reported better-than-expected second-quarter results as growth in Eliquis, Opdivo and Reblozyl drove sales and cost-cutting measures boosted the bottom line.
Bristol Myers Squibb Company Price, Consensus and EPS Surprise
Bristol Myers Squibb Company price-consensus-eps-surprise-chart | Bristol Myers Squibb Company Quote
Last quarter, Bristol-Myers announced that it is undertaking a strategic productivity initiative that will drive approximately $1.5 billion in cost savings by the end of 2025.
The strong uptake of new drugs should boost investor sentiment as it offsets the decline in sales of Revlimid.
Zacks Rank & Stocks to Consider
Bristol-Myers currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the healthcare sector are Entrada Therapeutics (TRDA - Free Report) and Corcept Therapeutics (CORT - Free Report) , both carrying a Zacks #1 Rank (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Entrada’s loss per share estimate for 2024 has narrowed from 14 cents to 13 cents in the past 60 days, and the same for 2025 has narrowed from $3.44 to $3.21 in the past 30 days.
In the past 60 days, estimates for CORT’s 2024 EPS have improved from 90 to 95 cents. Shares of CORT have rallied 49.2 Shares of CORT have rallied 49.2% in the past three months.
CORT’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 33.7%.