Bristol Myers Profit Declines on Expired Patents; Matches Earnings Estimates (BMY)

Bristol Myers Profit Declines on Expired Patents; Matches Earnings Estimates (BMY)


Biopharmaceutical company, Bristol Myers Squibb Co. (BMY) saw a decline in earnings on Thursday, caused by the loss of sales from expired patents. Still, the company matched analysts earnings estimates for the first quarter.

The New York, NY based company reported first quarter earnings of $609 million, or 37 cents per share, down -45% from $1.1 billion, or 64 cents per share last year. On a non-GAAP basis, earnings were $679 million, or 41 cents per share, compared to $1.1 billion, or 64 cents per share last year. On average analysts expected to see earnings of 41 cents per share.

The company saw a -27% drop in revenue for the quarter due to the expiration of its patents for Avapro/Avalide and Plavix. Revenue fell to $3.83 billion, from $5.25 billion last year. Excluding the patent expirations, sales for the company rose by 10%. Analysts expected to see revenue of $3.88 billion.

Sales of Avapro/Avalide dropped by -78% during the quarter, while blood thinner Plavix decreased -95%. Although the company has been seeing an upside in sales from its new products including skin cancer treatment Yervoy and blood thinner Eliquis, new product sales have not been able to offset the company’s losses from the expiration of the patents.

Looking ahead, the company reported that it expects to see FY2013 earnings in the range of $1.54 to $1.64 per share. Excluding special items, earnings are expected to see between $1.78 and $1.88 per share for the year. Analysts are expecting to see earnings of $1.83 per share.

Bristol Myers Squibb shares were down 80 cents, or -1.93% during Thursday morning trading. The stock has increased 18% in the past year.

The Bottom Line
Shares of Bristol Myers Squibb Co. (BMY) have a 3.46% yield, based on Thursday morning’s price of $40.43.

Bristol Myers Squibb Co. (BMY) is a “Recommended” dividend stock at this time, holding a DARS™ Rating of 3.5 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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