Why Is Bristol Myers (BMY) Down 1.8% Since Last Earnings Report?

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It has been about a month since the last earnings report for Bristol Myers Squibb (BMY). Shares have lost about 1.8% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Bristol Myers due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Bristol-Myers Q4 Earnings Beat, 2021 EPS View Raised

Fourth-quarter 2020 earnings of $1.46 per share easily beat the Zacks Consensus Estimate of $1.37 and increased from the year-ago quarter’s $1.22.

Total revenues of $11.1 billion beat the Zacks Consensus Estimate of $10.6 billion and increased 39% from the year-ago period owing to incremental contributions from the Celgene acquisition, which was completed in November 2019.

Quarterly Details

On a pro-forma basis, revenues were up 10% (assuming the date of the company’s acquisition of Celgene to be Jan 1, 2019).

Revenues increased 43% to $6.8 billion in the United States and 34% outside the country. Ex-U.S. revenues were up 30% when adjusted for foreign exchange impact.

Myeloma drug, Revlimid, added with erstwhile Celgene’s acquisition, contributed $3.2 billion to the top line and was the top revenue generator for Bristol-Myers as sales increased 18% on a pro-forma basis.

Eliquis maintained momentum for the company as sales increased 12% to $2.3 billion. We note that Bristol-Myers has a collaboration agreement with Pfizer for Eliquis.

Sales of immuno-oncology drug Opdivo, approved for multiple cancer indications, were up 2% year over year to $1.8 billion.

Sales of rheumatoid arthritis drug, Orencia, were up 9% to $867 million.

Another key drug from Celgene, Pomalyst posted a strong performance and generated sales of $835 million, up 21% year over year. Abraxane generated sales of $297 million, down 12% year over year.

Leukemia drug, Sprycel, raked in sales of $564 million, up 3% year over year. Melanoma drug, Yervoy, contributed $471 million to the top line, rising 22% year over year.

MM drug, Empliciti, recorded sales of $91 million, down 3% year over year.
New drugs like Reblozyl generated sales of $115 million while Inrebic generated sales of $15 million.

Adjusted research and development (R&D) expenses in the quarter increased to $2.5 billion from $1.9 billion. Adjusted marketing, selling and administrative expenses rose to $2.5 billion from $1.7 billion.

2020 Results

Revenues came in at $42.5 billion, up 63% year over year and beat the Zacks Consensus Estimate of $42 billion. Earnings per share of $6.44 also beat the Zacks Consensus Estimate of $6.36.