Bristol Myers’ Q3 Earnings Beat but Revenues Miss Estimates

American pharmaceutical industry company Bristol Myers Squibb (BMY) has posted better-than-expected earnings for the third quarter of 2021. However, revenues missed analysts’ expectations. The company has also updated its guidance for 2021.

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Following the news, shares of the company declined 2.2% to close at $56.49 on Wednesday.

The company recorded adjusted earnings of $2 per share, ahead of the consensus estimate of $1.94 per share. Bristol Myers had reported adjusted earnings of $1.63 per share in the same quarter last year.

Total revenues generated during the quarter stood at $11.62 billion, up 10% year-over-year, but fell short of the Street’s estimate of $11.64 billion. Increased acceptance of the company’s new product portfolio and continued demand growth across all four core therapeutic areas acted as tailwinds for revenues.

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Notably, U.S. revenues increased 12% year-over-year to $7.3 billion on the back of higher demand for Revlimid, Eliquis and new product portfolio. Also, International revenues jumped 8% to $4.3 billion, driven by elevated demand for Eliquis, Revlimid and Opdivo.

While marketing, selling and administrative expenses rose 5% year-over-year to $1.8 billion during the quarter, research and development expenses reflected a rise of 30% to $3.3 billion.

Pipeline Update & Guidance

The CEO of Bristol Myers, Giovanni Caforio, said, “Our teams advanced the product portfolio and achieved significant regulatory and clinical milestones, including for the fixed-dose combination of relatlimab and nivolumab. Our deep and diverse product pipeline, commercial execution and financial flexibility provide a strong foundation that is enabling the company to bring new medicines that benefit patients with serious unmet needs, drive in-line product performance and deliver sustained growth.” (See Bristol Myers stock charts on TipRanks)

For 2021, the company expects adjusted EPS to be in the range of $7.40 to $7.55, compared to the consensus estimate of $7.47. The prior range stood at earnings of $7.35 per share to $7.55 per share.

Analysts Recommendation

On October 25, Citigroup analyst Andrew Baum maintained a Buy rating on the stock with a price target of $75 (32.77% upside potential). The analyst believes that Bristol’s existing presence with rheumatologists through Orencia reflects commercial synergies.

Consensus among analysts is a Strong Buy based on 7 Buys and 2 Holds. The average Bristol Myers price target stands at $74.88, implying upside potential at 32.55% over the next 12 months.

Risk Analysis

According to the new TipRanks’ Risk Factors tool, the Bristol Myers stock is at risk mainly from three factors: Finance and Corporate, Tech and Innovation, and Legal and Regulatory, which contribute 26%, 22% and 19%, respectively, to the total 27 risks identified for the stock.