Bristol Myers Earnings Beat: Retail Sentiment Hits One-Year High

Shares of Bristol-Myers Squibb Co jumped over 8% on Friday after the firm topped second quarter analyst estimates on multiple counts. The pharma giant reported Q2 revenue at $12.20 billion, which came in higher than a Street estimate of $1.63 billion.

Adjusted earnings per share (EPS) came in at $2.07 as compared to an expected loss of $1.63. Following the announcement, retail sentiment flipped into the extremely bullish territory (90/100) hitting a one-year high supported by extremely high message volume (93/100).

During the second quarter, revenue rose 9% year-over-year (YoY) while EPS witnessed a growth of 18% YoY. The revenue was driven by the firm’s Growth Portfolio and its drug Eliquis.

US revenues increased 13% to $8.80 billion, primarily due to the growth and legacy portfolios while international revenues fell 1% to $3.40 billion, primarily due to the negative impact from foreign exchange of 7% and Revlimid.

As far as product revenues are concerned, the firm’s Growth Portfolio worldwide revenues increased 18% to $5.60 billion, primarily driven by higher demand for Opdivo, Reblozyl, Camzyos and Opdualag. Revenues for the Legacy Portfolio in the second quarter grew 2% to $6.60 billion, driven by higher demand for Eliquis and Pomalyst.

The firm has raised its full-year guidance, now expecting total revenues in the upper end of low-single digit range compared to low single-digit increase it guided in April. Diluted EPS was ratcheted up to $0.60-$0.90 from an earlier guidance of $0.40-$0.70.

Christopher Boerner, board chair and chief executive officer at Bristol-Myers Squibb said as the firm moves into the second half of the year, it remains focused on prioritizing opportunities with the greatest growth potential and impact for patients, including the anticipated U.S. launch of KarXT.  

Meanwhile, retail investors are viewing this as a potential turning point for the stock. One Stocktwits user named ‘Namhguab’ believed the stock was undervalued near the $42 level and still sees further upside following today’s news.

Photo Courtesy: Bristol-Myers Squibb

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