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Bristol-Myers Slips To Loss In Q2, But Results Top Estimates

bristolmyers aug06 lt

Biopharmaceutical company Bristol-Myers Squibb Co. (BMY) on Thursday reported a loss for the second quarter compared to a profit last year, hurt primarily by hefty amortization expenses. However, adjusted earnings per share and quarterly revenues topped analysts' expectations. Looking ahead, the company raised its adjusted earnings and revenue outlook for the full-year 2020.

In Thursday pre-market trade, BMY is trading at $61.68, up $1.99 or 3.33 percent.

Net Loss attributable to the company for the second quarter was $85 million or $0.04 per share, compared to net earnings of $1.43 billion or $0.87 per share for the prior-year quarter.

The results in the latest quarter include costs and expenses resulting from purchase price accounting, contingent value rights fair value adjustments and other acquisition and integration expenses.

Excluding items, adjusted earnings for the quarter were $1.63 per share, compared to $1.18 per share in the prior-year quarter. On average, analysts polled by Thomson Reuters expected the company to report earnings of $1.48 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter surged 61 percent to $10.13 billion from $6.27 billion in the same quarter last year. Revenues increased 63 percent when adjusted for the impact of foreign exchange. Wall Street expected revenues of $9.97 billion for the quarter.

The strong revenue growth was driven primarily by the impact of the Celgene Acquisition, which was completed on November 20, 2019. Revenues remained relatively flat with last year on a pro forma basis.

U.S. revenues for the quarter surged 77 percent to $6.49 billion from last year. International revenues increased 40 percent to $3.6 billion from last year. When adjusted for foreign exchange impact, international revenues rose 43 percent.

For fiscal 2020, the company now projects reported results between a loss of $0.06 per share and earnings of $0.09 per share and adjusted earnings in a range of $6.10 to $6.25 per share on revenues between $40.5 billion and $42.0 billion.

Previously, the company had expected earnings in the range of $0.37 to $0.57 per share and adjusted earnings in the range of $6.00 to $6.20 per share on revenues between $40.0 billion and $42.0 billion.

The Street is currently looking for earnings of $6.20 per share on revenues of $41.90 billion for the year.

The 2020 guidance assumes the peak impact of the current COVID-19 crisis on the business would occur in the second quarter of 2020, with a return to a more stable business environment in the third quarter and minimal impact from the fourth quarter of 2020 onwards.

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