Bristol-Myers Squibb Earnings Cheat Sheet: Margins Shrink as Net Income Drops

Rising costs hurt S&P 500 (NYSE:SPY) component Bristol-Myers Squibb Company (NYSE:BMY) in the second quarter as profit dropped from a year earlier. Bristol-Myers Squibb Company is a global company which develops, manufactures and sells pharmaceutical products.

Get more Earnings Cheat Sheets with our in depth coverage of earnings season >>

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

Results: Net income for the drug manufacturer fell to $902 million (52 cents per share) vs. $927 million (53 cents per share) a year earlier. This is a decline of 2.7% from the year earlier quarter.

Revenue: Rose 14% to $5.43 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: BMY reported adjusted net income of 56 cents per share. By that measure, the company beat the mean estimate of 55 cents per share. It beat the average revenue estimate of $5.04 billion.

Quoting Management: “I am proud of this organization and our strong second quarter results across the board-financially, clinically, and operationally. This performance demonstrates the success of our BioPharma strategy in delivering short term results and in positioning the Company for the future,” said Lamberto Andreotti, chief executive officer, Bristol-Myers Squibb. “While we delivered double-digit sales growth during the second quarter, driven in part by the strong initial performance of YERVOY (ipilimumab), we also received regulatory approval for NULOJIX (belatacept) in the U.S. and Europe, and ELIQUIS in Europe for VTE prevention. That brings us to three new products approved in three months, including the approval of YERVOY in the U.S. in March. We also presented clinical data from our oncology and diabetes franchises, and announced important positive top line results from our Phase III ARISTOTLE trial on ELIQUIS for stroke prevention in patients with atrial fibrillation.”

Key Stats:

Gross margin shrank 0.5 percentage point to 72.7%. The contraction appeared to be driven by increased costs, which rose 16% from the year earlier quarter while revenue rose 14%.

Revenue has now gone up for three straight quarters. In the first quarter, revenue rose 4.2% to $5.01 billion while the figure rose 74.9% in the fourth quarter of the last fiscal year from the year earlier.

The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 58 cents versus a mean estimate of net income of 53 cents per share.

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).

Get more Earnings Cheat Sheets with our in depth coverage of earnings season >>

(Source: Xignite Financials)