Earnings and Revenue Exceed Expectations

Bristol Myers Squibb (BMY) announced its third-quarter financial results, surpassing Wall Street estimates. The company reported earnings of $2 per share on revenue of $10.97 billion. Analysts surveyed by FactSet had projected earnings of $1.76 per share on revenue of $10.96 billion.

Compared to the same period last year, where earnings were $1.99 per share and revenue amounted to $11.22 billion, Bristol Myers experienced a slight decline in revenue mainly attributed to reduced sales of Revlimid, a well-known cancer-fighting drug.

Revlimid Sales Saw a Decline

Despite its popularity as a prescription drug for treating multiple myeloma in adults, worldwide revenue for Revlimid decreased by 41% compared to the previous year. The decline can be attributed to two factors: increased competition from generic alternatives and an increased number of patients who were able to receive the medication for free through the Bristol Myers Squibb Patient Assistance Foundation.

Revised Earnings Outlook for Fiscal 2023

In light of the current performance, Bristol Myers adjusted its earnings forecast for fiscal 2023. The company now anticipates earnings to be between $7.50 and $7.65 per share, compared to the previously estimated range of $7.35 to $7.65 per share.

Market Reaction

Following the announcement, shares of Bristol Myers declined by 4.7% in premarket trading on Thursday, reaching a price of $53.95 per share. With this drop, the stock has experienced a total decline of 21% throughout 2023.

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