Bristol-Myers Squibb Beats Q2 Expectations and Boosts Guidance on Rising Drug Sales
Key Takeaways
- Bristol-Myers Squibb’s second-quarter results beat revenue and adjusted EPS expectations.
- The company raised its full-year adjusted EPS guidance and now projects adjusted revenue to land in the upper end of its previously issued range.
- Revenue growth was driven by sales of its blood thinner Eliquis and cancer drug Opdivo.
Bristol-Myers Squibb (BMY) shares climbed Friday after the company beat expectations with its second-quarter results and raised its full-year guidance.
The pharmaceutical giant now expects 2024 adjusted revenue to climb in the higher end of the low-single-digit percentage increase it called for in April. Adjusted earnings per share (EPS) guidance was raised to a range of $0.60 to $0.90, up from $0.40 to $0.70.
In the second quarter, Bristol-Myers Squibb posted adjusted EPS of $2.07 on revenue of $12.2 billion, beating consensus expectations of $1.63 and $11.54 billion of analysts polled by Visible Alpha.
Eliquis, Opdivo Sales Jump
Eliquis, Bristol-Myers Squibb’s blood thinner drug, was a major driver of growth for the company’s legacy portfolio. Worldwide revenue for the drug jumped 7% year-over-year to $3.42 billion, including more than $2.5 billion in the U.S.
The cancer drug Opdivo was a standout for what the company calls its growth portfolio, with revenue increasing 11% to nearly $2.4 billion.
Shares of Bristol-Myers Squibb jumped nearly 8% to $48.77 as of 10:30 a.m. Friday.
Overall, Bristol-Myers Squibb’s second-quarter results exceeded expectations, driving a surge in its stock price. The company’s adjusted EPS of $2.07 on revenue of $12.2 billion surpassed analysts’ consensus estimates of $1.63 and $11.54 billion, respectively.
Positive Full-Year Guidance
Bristol-Myers Squibb raised its full-year guidance, projecting adjusted revenue to land in the upper end of its previously issued range. The company now expects a low-single-digit percentage increase in adjusted revenue for 2024. This positive outlook reflects the company’s confidence in its product portfolio and market demand.
The adjusted EPS guidance was also revised upwards, with the new range set at $0.60 to $0.90, compared to the previous range of $0.40 to $0.70. This adjustment indicates Bristol-Myers Squibb’s expectation of stronger profitability and financial performance.
Driving Revenue Growth
Two key drugs contributed significantly to Bristol-Myers Squibb’s revenue growth in the second quarter. Eliquis, the company’s blood thinner drug, saw a 7% year-over-year increase in worldwide revenue, reaching $3.42 billion. The U.S. market alone accounted for more than $2.5 billion in sales of Eliquis.
Opdivo, a cancer drug, was another standout performer for Bristol-Myers Squibb. The drug’s revenue increased by 11% to nearly $2.4 billion. These strong sales figures demonstrate the effectiveness of Bristol-Myers Squibb’s product portfolio and its ability to meet market demand.
Market Response
Investors reacted positively to Bristol-Myers Squibb’s strong second-quarter results and improved guidance. The company’s stock price surged nearly 8% to $48.77 as of 10:30 a.m. on Friday. This increase reflects investor confidence in the company’s financial performance and growth prospects.
Overall, Bristol-Myers Squibb’s second-quarter results and revised guidance indicate a robust performance and a positive outlook for the company. With strong sales of Eliquis and Opdivo driving revenue growth, Bristol-Myers Squibb is well-positioned to capitalize on market opportunities and deliver value to its shareholders.
Sources:
Investopedia
