Bristol Myers walloped fourth-quarter sales views Thursday, but Bristol Myers Squibb stock took a hit on a light outlook hamstrung by generic competition.
For the year, the drugmaker expects to earn an adjusted $6.55 to $6.85 per share. That high end of the guidance missed analysts' call for $6.91. Similarly, Bristol Myers forecast $45.5 billion in sales, which lagged the Street's $46.29 billion projection.
"This was a strong quarter, tarnished by lower-than-expected guidance due to generic competition as well as the negative effect of foreign currency," Edward Jones analyst John Boylan said in a report. "We believe that Bristol being cautious this early in the year also played a role in guidance."
Bristol Myers Squibb stock toppled 3.8%, closing at 57.42. Shares broke out of a flat base after topping a buy point at 61.08 on Jan. 27, according to MarketSurge. But the stock has since fallen back below that entry.
Bristol Myers Stock: Sales, Profit Handily Beat
In total, Bristol Myers earned $1.67 per share, minus some items, on $12.34 billion in fourth-quarter sales. Earnings dipped 2% but easily beat forecasts for $1.46 per share, according to FactSet. Sales rose 8% — or 9% when excluding exchange rates — and topped calls for $11.57 billion.
William Blair analyst Matt Phipps noted the beat was primarily driven by legacy drugs Revlimid and Eliquis. Revlimid is a cancer treatment, while Eliquis is a blood thinner.
But, among the newer drugs, Bristol Myers notched sales beats for Reblozyl, Breyanzi, Sotyktu and Camzyos. Reblozyl treats anemia in specific patients. Breyanzi is a cancer drug, Sotyktu treats psoriasis and Camzyos treats a heart condition.
Leerink Partners analyst David Risinger noted Abecma and Abraxane sales came in light. Abecma, a multiple myeloma treatment, brought in $105 million in sales and was roughly 14% below projections. Abraxane, a chemotherapy drug, generated $174 million in sales, but missed forecasts by 4%.
He kept his outperform rating on Bristol Myers Squibb stock.
All Eyes On Cobenfy
Analysts are also closely watching Cobenfy, Bristol's new schizophrenia drug courtesy of the company's $14 billion takeover of Karuna Therapeutics.
Cobenfy, which is approved in the U.S., brought in $10 million in sales during its first full quarter on the market.
The company is also testing Cobenfy in patients with Alzheimer's psychosis and as an added treatment for patients already taking a schizophrenia drug.
"How important are these for the long-term potential of the franchise?" William Blair's Phipps asked.
He has a market perform rating on Bristol Myers Squibb stock.
