Bristol Stock- Bristol Myers Just Beat Estimates. The Stock Isn’t Going Anywhere.
The drug company
Bristol Myers Squibb
beat Wall Street earnings and sales expectations in the last quarter of 2020.
The company reported non-GAAP earnings of $1.46 per share for the quarter on Thursday, just above the FactSet consensus estimate of $1.42 per share. It reported sales of $11.1 billion for the quarter, beating the FactSet consensus estimate of $10.7 billion.
(ticker: BMY) also increased its non-GAAP earnings guidance for 2021 to between $7.35 and $7.55 per share, up from a previous estimate of between $7.15 and $7.45 per share. The new guidance is in line with Wall Street expectations; which put earnings at $7.46 per share in 2021.
“In our first full year as a new company we delivered solid operational and financial results, and laid a strong foundation for the future,” said the company’s CEO, Dr. Giovanni Caforio, referring to the completion of the mega-acquisition of Celgene in late 2019. “The growth opportunities from our in-line and launch portfolios combined with a robust product pipeline and disciplined business development strategy strongly position the company to accelerate the renewal of our portfolio and achieve long-term sustainable growth.”
Shares of Bristol Myers were down 0.2%, at $61.93, in recent trading. The stock closed at $62.03 on Wednesday. Shares are down 0.5% so far this year, and down 5.4% over the past 12 months. The stock trades at 8.3 times expected earnings over the next 12 months. Of the 19 analysts tracked by FactSet who cover Bristol Myers stock, 13 rate it Overweight or a Buy, while six rate it a Hold.
The company reported $3.3 billion in sales of its cancer drug Revlimid in the fourth quarter of 2020, up 18% from the same quarter last year on a pro forma basis. It reported $2.3 billion in sales of Eliquis, which helps prevent blood clots, up 12%. And it reported $1.8 billion in sales of cancer treatment Opdivo, up 2%.
Bristol Myers also announced on Thursday a debt tender offer for a total purchase price of up to $4 billion.
Write to Josh Nathan-Kazis at [email protected]