Bristol Myers Squibb walloped profit expectations in the September quarter. Bristol Myers stock screamed to a year-high.
The Big Pharma player earned an adjusted $1.80 per share in the third quarter. Though earnings fell 10% year over year, they also beat expectations for $1.49 a share, according to FactSet. Earnings took a 9-cent negative hit due to a tax charge and licensing income.
Sales jumped 8% to $11.89 billion — or 10% when adjusting for foreign currency — and topped views for $11.27 billion. William Blair analyst Matt Phipps noted increased demand for Reblozyl, Breyanzi, Abecma and Camzyos helped drive sales growth. Reblozyl treats anemia, Breyanzi and Abecma are cancer treatments, and Camzyos treats a heart condition.
Bristol Myers stock surged 5.8% to 55.72. Shares have been trading tightly above a prior consolidation, just above a rising 10-week line.
Bristol Myers Stock: Strong Reblozyl Launch
Phipps called Reblozyl "one of the strongest launches in the company's new growth profile." Reblozyl sales missed his estimate at $447 million, but beat broader views for $435 million. Reblozyl sales rocketed 81% year over year.
Camzyos is also "showing encouraging traction," with $156 million in sales topping forecasts ranging from $142 million to $146 million, and up 129%.
Abecma and Breyanzi also came in north of projections at a respective $124 million and $224 million. Abecma sales rose 34% vs. the same three months last year, while Breyanzi revenue climbed 143%, Bristol Myers said in its news release.
"A surprisingly strong quarter for the cell therapy franchise and signs of manufacturing constraints no longer being a headwind," Phipps said.
He retained his market perform rating on Bristol Myers stock.
Revlimid, Opdivo Sales Split
Among Bristol Myers' biggest names, revenue from cancer treatments Revlimid and Opdivo were split. Revlimid generated $1.41 billion in sales, down 1% but ahead of calls for $1.11 billion. Opdivo sales rose 7% to $2.36 billion but missed expectations for $2.41 billion to $2.45 billion.
Revenue from blood thinner Eliquis jumped 11% to $3 billion, beating estimates for $2.84 billion to $2.9 billion, Phipps said. But he noted Eliquis is subject to Medicare price negotiations under the Inflation Reduction Act.
"With this impact, Bristol has guided toward worldwide Eliquis revenues in the range of $10.5 billion to $12.5 billion in 2026, and $8.5 billion to $11.0 billion in 2027," he said.
Bristol Myers slightly raised its outlook for the year and now expects sales to increase 5%. The firm also guided to adjusted earnings of 75 cents to 95 cents per year, an increase of 10 cents at the midpoint.
But that guidance hike is less than the third-quarter beat, Leerink Partners David Risinger said in a report. He has a market perform rating on Bristol Myers stock.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
