Bristol-Myers Squibb Company Earnings Cheat Sheet: Margin Expands Boosted by Rising Revenue, Net Income Rises

S&P 500 (NYSE:SPY) component Bristol-Myers Squibb Company (NYSE:BMY) reported net income above Wall Street’s expectations for the third quarter. Bristol-Myers Squibb is a global company that develops, manufactures, and sells pharmaceutical products.

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Bristol-Myers Squibb Company Earnings Cheat Sheet for the Third Quarter

Results: Net income for Bristol-Myers Squibb Company rose to $969 million (56 cents per share) vs. $949 million (55 cents per share) in the same quarter a year earlier. This marks a rise of 2.1% from the year earlier quarter.

Revenue: Rose 11.4% to $5.34 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: BMY reported adjusted net income of 61 cents per share. By that measure, the company beat the mean estimate of 58 cents per share. Analysts were expecting revenue of $5.3 billion.

Quoting Management: “Our solid financial results, key R&D data and multiple business development transactions together demonstrate our ability to execute our short-term plans while at the same timelaying a solid foundation for our future,” said Lamberto Andreotti, chief executive officer, Bristol-Myers Squibb.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 14% to $5.43 billion in the second quarter. The figure rose 4.2% in the first quarter from the year earlier and climbed 74.9% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by one cent in the second quarter and by 5 cents in the first quarter.

Margins rose in the second quarter after falling the quarter before. Gross margin rose 0.4 percentage point to 73.7% from the quarter earlier quarter. In the first quarter, the figure rose 0.5 percentage point to 72.7% from the year earlier quarter.

Net income has dropped 12.7% year over year on average across the last five quarters. Performance was hurt by a 94% decline in the fourth quarter of the last fiscal year from the year earlier quarter.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is 56 cents per share, up from 54 cents ninety days ago. Over the past three months, the average estimate for the fiscal year has climbed from $2.21 per to share to $2.28.

Competitors to Watch: Pfizer Inc. (NYSE:PFE), Merck & Co., Inc. (NYSE:MRK), Eli Lilly & Co. (NYSE:LLY), Sanofi-Aventis SA (NYSE:SNY), Abbott Laboratories (NYSE:ABT), Novartis AG (NYSE:NVS), Johnson & Johnson (NYSE:JNJ), Roche Holding Ltd. (RHHBY), GlaxoSmithKline plc (NYSE:GSK), and AstraZeneca plc (NYSE:AZN).

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(Source: Xignite Financials)