Bristol-Myers Q2 earnings, revenue top Street; stock dips on weak guidance

Biopharma company Bristol-Myers Squibb (NYSE: BMY) on Thursday reported higher earnings and revenues for the second quarter, The results also came in above market’s expectations. Meanwhile, the management revised down its full-year earnings guidance, sending the stock lower in the premarket session.

Revenues for the quarter rose 10% to $6.3 billion, surpassing the average analysts’ estimate of $6.11 billion. The top line was boosted by the US segment, which grew 14%. International business revenues rose 5% during the quarter.

The New York-based firm reported adjusted earnings of $1.18 per share, up from last year’s earnings of $1.01 per share and above Wall Street’s prediction. Net earnings attributable to shareholders climbed to f $1.4 billion or $0.87 per share from $373 million or $0.23 per share last year.

Product-wise, melanoma drug Yervoy witnessed a 17% revenue growth, while revenues of Anticoagulant Eliquis moved up 24% year-over-year.

“Through strong commercial execution and financial discipline we are establishing a solid foundation from which we can build the leading biopharma company, well-positioned to address the unmet needs of our patients and create long-term shareholder value,” said CEO Giovanni Caforio.

Melanoma drug Yervoy witnessed a 17% revenue growth, while revenues of Anticoagulant Eliquis moved up 24%

Meanwhile, the company lowered its guidance for full-year unadjusted earnings from $3.84 -$3.94 per share to $3.73- $3.83 per share. It raised the adjusted earnings guidance range from $4.10-$4.20 per share to $4.20-$4.30 per share. Research and development expenses are expected to decline in the low-double digits on an unadjusted basis, and in the mid-single digits on an adjusted basis.

Related: Bristol-Myers Squibb Q4 2018 Earnings Call Transcript

The company said it is on track to complete the acquisition of rival pharma company Celgene. Also, preparations are on for the post-acquisition integration.

Shares of Bristol-Myers dropped early Thursday after closing the previous session higher. The stock lost 18% since the beginning of the year and 24% in the last twelve months.

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