Bristol Myers Squibb, a leading biopharmaceutical company, experienced a decline in profit during the fourth quarter due to weaker margins. However, the company saw an unexpected increase in revenue, thanks to the strong performance of its drugs Eliquis and Opdivo.
Profit and Earnings
In the fourth quarter, Bristol Myers Squibb’s profit stood at $1.76 billion, or 87 cents per share. This is a decrease from the $2.02 billion, or 95 cents per share, reported in the same quarter of the previous year. When excluding one-time items, earnings were $1.70 per share, surpassing analyst predictions of $1.55 per share according to FactSet.
Revenue Growth
Despite expectations of falling revenue, Bristol Myers Squibb’s revenue rose to $11.48 billion in the fourth quarter, compared to $11.41 billion in the previous year’s quarter. Analysts polled by FactSet had anticipated a decrease to $11.19 billion. The growth was driven by increased sales of Eliquis, a blood thinner, and Opdivo, a cancer drug. These gains offset declines in revenue from their multiple-myeloma drug Revlimid due to competition from generic versions. The company’s new product portfolio also contributed to the positive revenue trend.
Gross Margins and Future Outlook
Bristol Myers Squibb faced a decline in gross margins due to their product mix and lower hedge settlement gains.
Looking ahead to 2024, the company aims to achieve low single-digit percentage growth in sales. They also expect adjusted earnings of $7.10 to $7.40 per share, surpassing current analyst estimates of $7.02 per share.