Yahoo Finance Bristol-Myers Beats on Q2 Earnings, Raises 2015 Guidance - Analyst Blog
Bristol-Myers Squibb Company’s BMY second-quarter 2015 earnings (excluding special items) of 53 cents per share beat the Zacks Consensus Estimate of 35 cents and were up 10% year over year.
Bristol-Myers Squibb Company - Earnings Surprise | FindTheBest
Total revenues of $4.2 billion were ahead of the Zacks Consensus Estimate of $3.7 billion. Revenues were up 7% year over year. Strong sales of the company’s rheumatoid arthritis drug Orencia and anti-clotting drug Eliquis boosted the top line in the reported quarter.
The Second Quarter in Detail
The company posted disappointing sales in the U.S, which were more than offset by an increase in revenues in the international markets. International revenues shot up 17%. Sales in U.S. markets decreased 3% to $1.8 billion.
Leukemia drug, Sprycel, registered sales of $405 million, up 10%. Sales of another oncology drug, Erbitux, fell 9% during the quarter to $169 million. Skin-cancer drug, Yervoy, contributed $296 million to total revenues during the reported quarter, down 8%.
Opdivo, which gained accelerated approval in Dec 2014 for the melanoma indication based on tumor response rate and the durability of response, generated revenues of $122 million as compared to $40 million in the first quarter of 2015. This March, Opdivo received its second FDA approval for the treatment of patients suffering from metastatic squamous non-small cell lung cancer with progression on or after platinum-based chemotherapy.
The performance of key drugs in the virology unit was disappointing. Sales of Baraclude declined 7% to $343 million. Sales of the drug are expected to decline further due to generic competition. Sales of HIV treatments, Reyataz and Sustiva, also dropped 16% and 12% to $303 million and $317 million, respectively.
Sales of Eliquis were $437 million during the reported quarter, up approximately 23.1% sequentially. Bristol-Myers has a partnership with Pfizer PFE for Eliquis. The hepatitis C virus (HCV) franchise at Bristol-Myers contributed $479 million to the company’s top line in the reported quarter.
Adjusted marketing, selling and administrative expenses in the reported quarter were $965 million, 1.8% above the year-ago figure. Adjusted research and development expenses for the quarter increased 2.8% to $985 million.
2015 Earnings Outlook
The company raised its 2015 earnings guidance. Bristol-Myers expects adjusted earnings per share in the range of $1.70 to $1.80 as compared to the previous guidance of $1.60 to $1.70 per share. The pre-earnings Zacks Consensus Estimate of $1.73 is within the guided range.
Bristol-Myers expects to generate worldwide revenues between $15.5 billion and $15.9 billion in 2015, slightly above the Zacks Consensus Estimate of $15.3 billion.
Our Take
We are impressed by strong sales of drugs like Orencia, Eliquis and Sprycel in the second quarter of 2015. We are also encouraged by Bristol-Myers’ efforts to develop its pipeline. Shares of the company rose in pre-market trading.
We believe investor focus will remain on updates regarding the company’s high-profile immuno-oncology drug Opdivo, going forward.
Bristol-Myers carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Sunesis Pharmaceuticals, Inc. SNSS and AMAG Pharmaceuticals, Inc. AMAG. Both carry a Zacks Rank #1 (Strong Buy).
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