Mar 31, 2023

Bristol-Myers Squibb Q1 2023 Earnings Report

Reported strong first-quarter results driven by in-line products and new product portfolio growth, despite Revlimid generic erosion and foreign exchange impacts. The company successfully executed its strategic priorities and advanced its portfolio renewal strategy, achieving important regulatory and clinical milestones.

Key Takeaways

Bristol-Myers Squibb reported first-quarter revenues of $11.3 billion, a decrease of 3% compared to the previous year, but saw an 8% increase in revenue from in-line products and the new product portfolio. GAAP EPS was $1.07, and non-GAAP EPS was $2.05. The company is adjusting its GAAP EPS guidance for 2023 while affirming its non-GAAP financial guidance.

First-quarter revenues reached $11.3 billion, reflecting a 3% decrease year-over-year, primarily due to Revlimid generic erosion and foreign exchange impacts.

In-line products and the new product portfolio demonstrated strong growth, increasing 8% in revenue, or 10% when adjusted for foreign exchange.

GAAP earnings per share were reported at $1.07, while non-GAAP EPS reached $2.05, including a net impact of ($0.01) per share due to acquired IPRD charges and licensing income.

The company is advancing its portfolio renewal strategy, achieving significant milestones across therapeutic areas.

Total Revenue
$11.3B
Previous year: $11.6B
-2.7%
EPS
$2.05
Previous year: $1.96
+4.6%
Gross Profit
$8.77B
Previous year: $9.18B
-4.4%
Cash and Equivalents
$9B
Previous year: $12.4B
-27.3%
Free Cash Flow
$2.69B
Previous year: $3.56B
-24.4%
Total Assets
$94.3B
Previous year: $103B
-8.5%

Bristol-Myers Squibb

Bristol-Myers Squibb

Bristol-Myers Squibb Revenue by Segment

Forward Guidance

Bristol Myers Squibb is adjusting its 2023 GAAP line-item guidance primarily due to changes in other settlement income and in the fair market value of equity investments while affirming non-GAAP EPS guidance.

Positive Outlook

  • Total Revenues (as reported) ~ 2% increase
  • Total Revenues (excl. F/X) ~ 2% increase
  • Revlimid ~$6.5 billion
  • Gross Margin % ~ 77%
  • Effective tax rate ~ 21%

Challenges Ahead

  • Unspecified items including purchase price accounting adjustments
  • Acquisition and integration expenses
  • Charges associated with restructuring
  • Cost of acquiring a priority review voucher
  • Equity investment losses

Revenue & Expenses

Visualization of income flow from segment revenue to net income