Bristol-Myers Squibb Company Earnings: Margins Expand and Profit Climbs

S&P 500 (NYSE:SPY) component Bristol-Myers Squibb Company (NYSE:BMY) reported its results for the fourth 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 Fourth Quarter

Results: Net income for Bristol-Myers Squibb Company rose to $852 million (50 cents per share) vs. $483 million (28 cents per share) in the same quarter a year earlier. This marks a rise of 76.4% from the year earlier quarter.

Revenue: Rose 6.7% to $5.45 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: BMY reported adjusted net income of 53 cents per share. By that measure, the company fell short of mean estimate of 55 cents per share. Analysts were expecting revenue of $5.51 billion.

Quoting Management: “In the fourth quarter, we delivered solid financial results, concluding a very good year that sets the foundation for the long-term growth of the company,” said Lamberto Andreotti, chief executive officer, Bristol-Myers Squibb. “Our delivery of several important new products to patients, the ability of our productive R&D organization to build an innovative and diverse pipeline, and our continued commitment to business development gives us confidence in our future.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 11.4% to $5.34 billion in the third quarter. The figure rose 14% in the second quarter from the year earlier and climbed 4.2% in the first quarter from the year-ago quarter.

The company fell short of forecasts after beating estimates in the previous two quarters. In the third quarter, it topped the mark by 3 cents, and in the second quarter, it was ahead by one cent.

The company has now seen net income rise in two straight quarters. In the third quarter, net income rose 2.1% from the year earlier.

Looking Forward: Over the past ninety days, the average estimate for the first quarter of the next fiscal year has fallen from 66 cents per share to 60 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved up from $2.28 a share to $2.30 over the last ninety days.

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), GlaxoSmithKline plc (NYSE:GSK), and AstraZeneca plc (NYSE:AZN).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com