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.

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.