Bristol-Myers Squibb Reports Mixed Q4 Results; Shares Rise 1.4%

Pharmaceutical company Bristol Myers Squibb (NYSE: BMY) has reported mixed results for the quarter ended December 31, 2021.

Following the earnings, shares of the company rose 1.4% on Friday. However, the stock pared its gains slightly to close at $64.90 in the extended trading session.

Revenue & Earnings

Bristol Myers Squibb reported quarterly revenues of almost $12 billion, a rise of 8% year-over-year. The primary driver of this growth was an 18% year-over-year increase in revenue from Eliquis. However, the figure failed to surpass the consensus estimate of $12.12 billion.

The company reported quarterly earnings of $1.83 per share, up 25% from the same quarter last year. The figure also topped the consensus estimate of $1.82.

In other operating metrics, the company reported gross margins of 80.3%, an increase of 79.8% from the previous year.

Further, in December, the company also authorized a $15 billion, multi-year share repurchase program. Notably, as part of the program, the company plans to execute an accelerated share repurchase agreement during the first quarter of 2022 to repurchase up to $5 billion of Bristol Myers Squibb common stock.

Outlook

Bristol Myers Squibb has also provided guidance for the full-year 2022.

For 2022, the company expects revenues to be $47 billion, while it forecasts EPS to be in the range of $7.65 to $7.95.

Management Commentary

The CEO of Bristol Myers Squibb, Giovanni Caforio, M.D., said, “I am proud of how our company performed in 2021, helping more patients across our therapeutic areas, while achieving 9% revenue and 17% non-GAAP EPS growth, respectively.  I am confident in our ability to execute against our key milestones in 2022, including three planned first-in-class launches with relatlimab plus nivolumab fixed dose combination, mavacamten and deucravacitinib.”

Stock Rating

Post the earnings, BMO Capital analyst Evan David Seigerman reiterated a Buy rating on the stock with a price target of $72, which implies upside potential of 10.85 from current levels.

The analyst said, “4Q21 sales in line; EPS 2% ahead. While sales were broadly in line, it was a mixed bag for the key growth drivers with Eliquis, and Yervoy well ahead but slight misses for Opdivo, Breyanzi, and Reblozyl. 2022 guidance was reiterated with additional data as expected. 2022 will be an important year for execution with new launches (relatimab, mavacamtem, and deucravacitinib) but we think these will provide a good foundation for future growth. Reiterate Outperform.”

The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 4 Buys and 3 Holds. The average Bristol Myers Squibb price target of $65.80 implies that the stock has 1.3% upside potential from current levels. Shares have gained 7.9% over the past year.

Positive News Sentiment

News Sentiment for BMY is Positive based on 43 articles over the past seven days. 100% of the articles have Bullish sentiment, compared to the sector average of 58%.

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