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2022-02-05 11:09

Bristol-Myers Squibb and Co is up by 1.55% in the stock market after reporting its financial results for the fourth quarter and full year. The company is America’s well-known pharmaceutical firm with headquarters in New York.
How Bristol-Myers performed in Q4
Bristol-Myers reported earnings of $2.4 billion or $1.07 per share in the fourth quarter of 2021 compared to a loss of $10.0 billion or $4.45 per share in the fourth quarter of 2020. Adjusted earnings per share for the final quarter of 2021 were $1.83 versus the expected $1.80.

For the full year 2021, the company’s revenue was $46.4 billion whereas the earnings per share for the year was $3.12. Owing to the double-digit growth in Eliquis and Opdivo, Bristol-Myer generated a revenue of $11.9 billion in Q4, which is higher than $11.0 billion in the Q4 of 2020. As per FactSet consensus it was expected that sales will reach $12.0 billion in the fourth quarter. In the earnings press release, CEO Giovanni Caforio 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. 2021 was a pivotal year for our company as we achieved significant regulatory and clinical milestones and positioned the company to successfully renew our portfolio."

In Q4, the company’s gross margin rose to 80.3% from 73.7%. Research and development expenses were $2.6 billion, a decline of 30% YoY. At $2.4 billion, Bristol-Myers reported a plunge of 13% in its marketing, selling and administrative expenses.

What Bristol-Myers is expecting for 2022
The company has provided outlook for the year 2022, they anticipate a revenue of $47.0 billion compared to the analyst’s expectation of $47.2 billion. Moreover, the management expects adjusted EPS in the range of $7.65 to $7.95. CEO Caforio added:

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. Our financial strength, dedicated workforce and proven ability to execute will enable us to continue to advance our pipeline, invest in future sources of innovation and position the company for sustained growth.”

Bristol-Myers is set to buyback $15 billion worth of its stock. Out of this total, $5.0 billion share repurchase, it said in the earnings press release, will be carried out in the fiscal first quarter. On a year-to-date basis, the stock is now up more than 5.0% but is still down over 10% from its high in August 2021. The $144.28 billion company trades at a PE multiple of 9.0.