Why Bristol Myers Squibb Stock Topped the Market on Thursday
Not for the first time this year, Bristol Myers Squibb (BMY +2.79%) posted an impressive quarterly earnings report Thursday morning. Investors clearly found much to like in the second-quarter figures, as they greeted the news by pushing the pharmaceutical company’s stock up by almost 2.8%, easily outpacing the benchmark S&P 500 index’s 1.5% rise.
One powerful portfolio
For the period, Bristol Myers Squibb’s revenue was $12.97 billion, representing a 6% year-over-year improvement. Hotter growth could be found on the bottom line, with net income not under generally accepted accounting principles (non-GAAP, or adjusted) zooming to $4.2 billion ($2.04 per share) from the year-ago quarter’s $3 billion.
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Both headline numbers were comfortably above average analyst estimates. Pundits tracking the stock had been expecting $11.71 billion on the top line and adjusted earnings per share (EPS) of $1.61.
Bristol Myers Squibb has an admirably well-performing lineup of commercialized drugs in its aptly named growth portfolio, and this lineup was the key reason those fundamentals rose. Growth’s growth, as it were, was a lofty 15% year over year to $7.6 billion. That was led by Opdivo, with sales of almost $2.5 billion worldwide in the quarter.
Today’s Change
(2.79%) $1.76
Current Price
$64.86
Key Data Points
Market Cap
Day’s Range
$62.23 – $65.56
52wk Range
$42.52 – $65.56
Volume
18M
Avg Vol
12M
Gross Margin
66.07%
Dividend Yield
3.98%
Future beats?
Such improvements gave Bristol Myers Squibb management the confidence to raise annual guidance. The company now forecasts total revenue for 2026 of $49 billion to $50 billion, up from the prior range of $46 billion to $47.5 billion. The adjusted EPS forecast also got a lift — it is now $6.75 to $7, up from $6.05 to $6.35.
The prognosticators collectively modeled $47.5 billion in revenue and an adjusted EPS of $6.34.
When a company beats strongly on analyst estimates that already anticipate meaningful growth, investors understandably take notice. This globe-spanning pharmaceutical still has plenty left in the tank, and what’s more, it pays a high-yield dividend. I’d definitely flag it as a solid buy candidate.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bristol Myers Squibb. The Motley Fool has a disclosure policy.
