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Bristol-Myers Squibb Company BMY reported adjusted earnings per share (EPS) of $1.80 for the third quarter of 2024, which beat the Zacks Consensus Estimate of $1.49. In the year-ago quarter, BMY had posted an adjusted EPS of $2.
Total revenues of $11.9 billion surpassed the Zacks Consensus Estimate of $11.3 billion. The top line also increased 8% from the year-ago period’s level, primarily driven by a strong growth portfolio and an increase in Eliquis sales.
BMY’s shares are trading up following the results.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The company’s shares have gained 2.6% year to date against the industry's decline of 3.6%.
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Revenues increased 9% to $8.2 billion in the United States. International revenues increased 7% year over year to $3.7 billion. Increases in the sales of drugs from the growth portfolio and Eliquis were offset by the generic erosion of Sprycel due to the loss of exclusivity.
BMY’s Growth Portfolio Fuels Top Line in Q3
Revenues from the Growth portfolio totaled $5.8 billion, up 18% from the year-ago level. Sales grew 20% when adjusted for foreign exchange impacts.
Growth Portfolio revenues were primarily driven by higher demand for Reblozyl, Camzyos, Breyanzi, and Opdualag.
Total sales of the immuno-oncology drug Opdivo, approved for multiple cancer indications, rose 4% year over year to $2.36 billion. The figure missed both the Zacks Consensus Estimate and our model estimate of $2.4 billion.
Sales of the rheumatoid arthritis drug Orencia increased 1% to $936 million.
Melanoma drug Yervoy contributed $642 million to the top line. The figure rose 11% year over year.
Reblozyl sales surged 80% year over year to $447 million. Reblozyl sales beat the Zacks Consensus Estimate of $445 million but missed our model estimate of $472 million.
Opdualag sales jumped 40% to $233 million. Opdualag sales missed the Zacks Consensus Estimate of $245 million and our model estimate of $256 million.
Sales of Zeposia and Breyanzi surged 20% and 143%, respectively, to $147 million and $224 million. Breyanzi sales beat the Zacks Consensus Estimate of $184 million and our model estimate of $171.2 million.
Abecma sales gained 33% to $124 million.
Camzyos and Sotyktu sales totaled $156 million and $66 million, respectively.
Augtyro and Krazati raked in sales of $10 million and $34 million, respectively.
Sprycel Pulls Down BMY’s Legacy Portfolio Revenues
Revenues for the Legacy Portfolio totaled $6 billion, up 1% year over year. This was driven by an 11% increase in global sales of blood thinner drug Eliquis.
Eliquis sales of $3 billion also beat our model estimate of $2.83 billion and the Zacks Consensus Estimate of $2.87 billion.
Please note that Bristol-Myers has a collaboration agreement with Pfizer PFE for Eliquis. The companies collaborated in 2007. Profits and losses are shared equally on a global basis, except in certain countries where Pfizer commercializes Eliquis and pays BMY a sales-based fee.
Multiple myeloma (MM) drug Revlimid revenues declined 1% to $1.4 billion due to lower demand owing to generic erosion. Sales surpassed the Zacks Consensus Estimate of $1 billion and our estimate of $967.4 million.
MM drug Pomalyst generated sales of $898 million, up 3% year over year. Abraxane revenues declined 3% to $253 million.
Leukemia drug Sprycel sales plunged 44% year over year to $290 million due to generic competition.
Costs and Margin
Gross margin decreased to 76% from 77.3% in the year-ago quarter due to product mix. Adjusted research and development expenses increased 8% to $2.4 billion. Adjusted marketing, selling and administrative expenses remained relatively flat at $2 billion.
Acquired IPRD increased to $262 million from $80 million.
BMY Raises 2024 Earnings Guidance
Bristol-Myers now expects adjusted earnings to be in the range of 75 cents-95 cents per share in 2024, up from the earlier estimated band of 60 cents to 90 cents. The Zacks Consensus Estimate for 2024 EPS is pegged at 72 cents.
Revenues are anticipated to increase approximately 5% (previous guidance: upper end of low single-digit range.
Bristol Myers Squibb Company Price, Consensus and EPS Surprise
Bristol Myers Squibb Company Price, Consensus and EPS Surprise
Bristol Myers Squibb Company price-consensus-eps-surprise-chart | Bristol Myers Squibb Company Quote
BMY’s Key Recent Developments
BMY recently won FDA approval for xanomeline and trospium chloride (formerly KarXT), an oral medication for the treatment of schizophrenia in adults. The drug was approved under the brand name Cobenfy.
The FDA also recently approved Opdivo for the treatment of adult patients with resectable (tumors ≥4 cm or node positive) non-small cell lung cancer and no known epidermal growth factor receptor mutations or anaplastic lymphoma kinase rearrangements for neoadjuvant treatment (before surgery), in combination with platinum-doublet chemotherapy, followed by single-agent Opdivo as adjuvant treatment after surgery.
Our Take on BMY’s Q3 Performance
Bristol-Myers reported better-than-expected third-quarter results driven by higher demand for Reblozyl, Breyanzi, Camzyos and Opdualag. The increase in annual earnings guidance, buoyed by strong third-quarter results, was impressive.
Growth in Eliquis drug also led to an upside in the top line. While Revlimid sales continue to decline, the drug managed to beat consensus expectations in the quarter.
The strong uptake of new drugs should boost investor sentiment as it offsets the decline in sales of Revlimid.
Zacks Rank & Other Stocks to Consider
Bristol-Myers currently carries a Zacks Rank #2 (Buy).
A couple of other top-ranked stocks in the biotech sector are Amicus Therapeutics FOLD and Amarin AMRN. While FOLD carries a Zacks #1 Rank (Strong Buy) at present, AMRN carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 90 days, estimates for Amicus Therapeutics’ 2024 earnings per share (EPS) have moved up from 20 to 22 cents. EPS estimates for 2025 have remained stable at 53 cents during the same period. FOLD’s earnings beat estimates in three of the trailing four quarters and missed the mark once, delivering an average surprise of 23.96%.
In the past 90 days, the 2024 loss per share estimate for Amarin has narrowed 2 cents. AMRN’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 118.75%.
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