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Category: Stock Market and Bristol-Myers Squibb
Date: 8 February 2020 Stock Price: $66.25 We take a look at the 4th quarter earnings report of their 2019 fiscal year of Bristol-Myers Squibb a biopharmaceutical company that develops and manufactures innovative medicines to help patients prevail over serious diseases.
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About Bristol-Myers Squibb
Bristol-Myers Squibb is a global biopharmaceutical company whose mission is to discover, develop and deliver innovative medicines that help patients prevail over serious diseases.
We are proud of the advancements we have made in oncology, hematology, immunology and cardiovascular disease, and we are dedicated to helping patients prevail over serious diseases through our diverse and promising pipeline and new scientific platforms. We are pursuing therapies at the forefront of scientific discovery with the goal of bringing an exciting new generation of life-changing treatments to patients. We aspire to be at the center of a vibrant healthcare innovation ecosystem, where academic research centers, biotech and biopharma companies all contribute to continued scientific advancement.
We are proud of the advancements we have made in oncology, hematology, immunology and cardiovascular disease, and we are dedicated to helping patients prevail over serious diseases through our diverse and promising pipeline and new scientific platforms. We are pursuing therapies at the forefront of scientific discovery with the goal of bringing an exciting new generation of life-changing treatments to patients. We aspire to be at the center of a vibrant healthcare innovation ecosystem, where academic research centers, biotech and biopharma companies all contribute to continued scientific advancement.
Overview of Bristol-Myers Squibb 4th quarter 2019 earnings report
The data below refers to the latest quarter's data (unless specified otherwise)
- Total revenues: $7.945 billion (up from $5.973 billion for the same quarter of the previous year)
- Total revenues increased by 33.02% over the last 12 months
- Total expenses: $8.074 billion (up from $4.468 billion for the same quarter of the previous year)
- Total expenses increased by 80% over the last 12 months
- Some margin squeeze on Bristol-Myers Squibb as total revenues grew at a rate a lot slower than their expenses
- Net loss: -$1.056 billion (down from $1.160 billion for the same quarter of the previous year)
- Diluted earnings per share: -$0.55 (down from $0.71 for the same quarter of the previous year)
- PE ratio of Bristol-Myers Squibb: 32.9
- Number of shares in issue: 1.918 billion (up from 1.637 billion for the same period of the previous year)
- Cash and cash equivalents: $12.346 billion
- Cash and cash equivalents per share: $6.43
- Cash and cash equivalents makes up 9.7% of Bristol-Myers Squibb market capital
Bristol (NYSE: BMY) management commentary on 4th quarter 2019 earnings
NEW YORK--(BUSINESS WIRE)-- Bristol-Myers Squibb Company (NYSE:BMY) today reports results for the fourth quarter and full year of 2019, which highlight continued strong sales and robust operating performance, along with the ongoing advancement of the company’s pipeline.
“By all measures, 2019 was a transformative year for Bristol-Myers Squibb as we progressed our strategy through the acquisition of Celgene, delivered strong operational and financial performance, and continued to drive important science for patients,” said Giovanni Caforio, M.D., chairman and chief executive officer, Bristol-Myers Squibb. “With an expanded portfolio of high-performing brands, eight potential commercial launch opportunities, a deep and broad early pipeline, and the financial flexibility to continue to invest in innovation, the company enters 2020 uniquely positioned to transform patients’ lives through science and create long-term sustainable growth.”
“By all measures, 2019 was a transformative year for Bristol-Myers Squibb as we progressed our strategy through the acquisition of Celgene, delivered strong operational and financial performance, and continued to drive important science for patients,” said Giovanni Caforio, M.D., chairman and chief executive officer, Bristol-Myers Squibb. “With an expanded portfolio of high-performing brands, eight potential commercial launch opportunities, a deep and broad early pipeline, and the financial flexibility to continue to invest in innovation, the company enters 2020 uniquely positioned to transform patients’ lives through science and create long-term sustainable growth.”
BUSINESS DEVELOPMENT UPDATE
FINANCIAL GUIDANCE
Bristol-Myers Squibb is providing 2020 GAAP EPS guidance range of $0.75 to $0.95 and non-GAAP EPS guidance range of $6.00 to $6.20. In addition, the company is providing for 2021, a non-GAAP EPS guidance range of $7.15 to $7.45. Both GAAP and non-GAAP guidance for 2020 and non-GAAP guidance for 2021 includes the impact of the Celgene acquisition and the Otezla divestiture and assume current exchange rates.
- In February, the company and its partner BioMotiv announced the launch of Anteros Pharmaceuticals, a biotechnology company focused on developing a new class of drugs for fibrotic and other inflammatory diseases, as part of its strategic partnership agreement.
- In January, the company and its partner Nektar Therapeutics announced that the companies amended the strategic collaboration agreement for bempegaldesleukin plus Opdivo.
- In January, the company announced that it completed the divestiture of its oral solid, biologics, and sterile product manufacturing and packaging facility in Anagni, Italy, to Catalent Inc.
FINANCIAL GUIDANCE
Bristol-Myers Squibb is providing 2020 GAAP EPS guidance range of $0.75 to $0.95 and non-GAAP EPS guidance range of $6.00 to $6.20. In addition, the company is providing for 2021, a non-GAAP EPS guidance range of $7.15 to $7.45. Both GAAP and non-GAAP guidance for 2020 and non-GAAP guidance for 2021 includes the impact of the Celgene acquisition and the Otezla divestiture and assume current exchange rates.
Bristol-Myers Squibb (NYSE: BMY) stock price history
The image below obtained from Google, shows the stock price history of Bristol-Myers Squibb over the last 5 years. And its been a very average time for Bristol-Myers Squibb stockholders. 5 years ago the stock of Bristol-Myers Squibb was trading at around $60 a stock and its currently trading at $66.25 a stock. That's a very mediocre return of 10.4% provided to Bristol-Myers Squibb stockholders over the last 5 years.
The stock of Bristol-Myers Squibb is trading at a lot closer to its 52 week high of $68.34 than it is to its 52 week low of $42.48 a stock, which to us is an indication that the short term sentiment and momentum of Bristol-Myers Squibb stock is positive at this point in time.
The stock of Bristol-Myers Squibb is trading at a lot closer to its 52 week high of $68.34 than it is to its 52 week low of $42.48 a stock, which to us is an indication that the short term sentiment and momentum of Bristol-Myers Squibb stock is positive at this point in time.
Recent coverage of Bristol-Myers Squibb
The extract below discusses the latest regarding Bristol-Myers Squibb as obtained from TheStreet.com
Bristol-Myers Squibb (BMY) - Get Report posted earnings on Thursday, Feb. 6. Here's what drove the quarter.
Bristol-Myers Squibb said that non-GAAP earnings came in at $1.22 a share, which was well ahead of analysts' expectations of 94 cents and up 30% from the same period last year. Revenue came in at $7.95 billion, which beat expectations of $6.2 billion.
And then the company forecasts non-GAAP earnings of $6 to $6.20 a share, with revenue rising to between $40.5 and $42.5 billion in the financial year of 2020. Sales of Opdivo, which is Bristol-Myers blockbuster Immuno-oncology drug, fell 2% to $1.76 billion, which came in shy of the FactSet consensus of $1.79 billion. And Bristol-Myers noted that it “progressed our strategy through the acquisition of Celgene.”
Read the full article here
Bristol-Myers Squibb (BMY) - Get Report posted earnings on Thursday, Feb. 6. Here's what drove the quarter.
Bristol-Myers Squibb said that non-GAAP earnings came in at $1.22 a share, which was well ahead of analysts' expectations of 94 cents and up 30% from the same period last year. Revenue came in at $7.95 billion, which beat expectations of $6.2 billion.
And then the company forecasts non-GAAP earnings of $6 to $6.20 a share, with revenue rising to between $40.5 and $42.5 billion in the financial year of 2020. Sales of Opdivo, which is Bristol-Myers blockbuster Immuno-oncology drug, fell 2% to $1.76 billion, which came in shy of the FactSet consensus of $1.79 billion. And Bristol-Myers noted that it “progressed our strategy through the acquisition of Celgene.”
Read the full article here
Bristol-Myers Squibb (NYSE: BMY) stock valuation
So what do we value Bristol-Myers Squibb stock at after the release of their 4th quarter 2019 earnings and the fiscal guidance provided for the full fiscal 2020? Based on Bristol-Myers Squibb earnings report and fiscal guidance provided our valuation models provides a target (full value) price of Bristol-Myers Squibb at $82.90 a stock. We therefore believe that the stock of Bristol-Myers Squibb is undervalued.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $82.90 therefore we believe a good entry point into Bristol-Myers Squibb stock is at $74.67 or below. We expect the stock of Bristol-Myers Squibb to to kick up from current levels to levels closer to our target price (full value price) in coming weeks and moths as we believe it is significantly undervalued at this point in time.
We therefore rate Bristol-Myers Squibb as a buy
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $82.90 therefore we believe a good entry point into Bristol-Myers Squibb stock is at $74.67 or below. We expect the stock of Bristol-Myers Squibb to to kick up from current levels to levels closer to our target price (full value price) in coming weeks and moths as we believe it is significantly undervalued at this point in time.
We therefore rate Bristol-Myers Squibb as a buy
Next earnings release of Bristol-Myers Squibb
It is expected that Bristol-Myers Squibb will publish their 1st quarter 2020 earnings report in early May 2020