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Bristol-Myers Squibb Goes Negative

By Seth Jayson – Updated Apr 7, 2017 at 11:11AM

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Just the facts, Fool.

Bristol-Myers Squibb (NYSE: BMY) reported earnings on Oct. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Bristol-Myers Squibb missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share shrank to a loss.

Margins dropped across the board.

Revenue details
Bristol-Myers Squibb reported revenue of $3.74 billion. The 15 analysts polled by S&P Capital IQ expected revenue of $3.97 billion on the same basis. GAAP reported sales were 30% lower than the prior-year quarter's $5.35 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.41. The 17 earnings estimates compiled by S&P Capital IQ averaged $0.42 per share. GAAP EPS were -$0.43 for Q3 compared to $0.56 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 73.6%, 40 basis points worse than the prior-year quarter. Operating margin was 15.0%, 1,960 basis points worse than the prior-year quarter. Net margin was -19.0%, 3,710 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $4.22 billion. On the bottom line, the average EPS estimate is $0.40.

Next year's average estimate for revenue is $17.83 billion. The average EPS estimate is $1.94.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,701 members out of 1,811 rating the stock outperform, and 110 members rating it underperform. Among 474 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 455 give Bristol-Myers Squibb a green thumbs-up, and 19 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Bristol-Myers Squibb is hold, with an average price target of $34.88.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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