Bristol-Myers Squibb’s 3Q17 performance
Bristol-Myers Squibb (BMY) reported EPS (earnings per share) of $0.75 in 3Q17, missing analysts’ estimate of $0.77. However, it surpassed their revenue estimate of $5.2 billion, reporting revenue of $5.3 billion.
Revenue and EPS
The above graph shows Bristol-Myers Squibb’s revenue over the last few quarters. In 3Q17, it saw revenue growth of 6.7% from the ~$4.9 billion it reported in 3Q16. This rise was the result of ~7% growth at constant exchange rates offset by a ~1% impact of foreign exchange—approximately 45% of the company’s total revenue is from outside US markets. In 3Q17, Bristol-Myers Squibb reported EPS of $0.75, compared with EPS of $0.77 in 3Q16.
Bristol-Myers Squibb has restructured its business into a single segment. However, drugs are classified into two brand-based categories—prioritized and established.
Prioritized brands include key products such as Eliquis, Empliciti, Opdivo, Orencia, Sprycel, and Yervoy. Total revenue for prioritized brands rose ~26% to $4.0 billion in 3Q17 from $3.2 billion in 3Q16. Overall sales grew between 3Q16 and 3Q17.
Established brands include products from various therapeutic areas, such as HIV products, hepatitis C products, and hepatitis B products. Total revenue for established brands fell ~29.5% to $1.2 billion in 3Q17 from $1.8 billion in 3Q16. Notably, the VanEck Vectors Pharmaceutical ETF (PPH) has a 5.0% exposure to Bristol-Myers Squibb, a 5.3% exposure to Johnson & Johnson (JNJ), a 5.2% exposure to AstraZeneca (AZN), and a 5.2% exposure to Pfizer (PFE).