Jun 30, 2023

Bristol-Myers Squibb Q2 2023 Earnings Report

Reported a decline in revenue due to lower sales of Revlimid, partially offset by in-line products and new product portfolio, and revised outlook for total revenues and GAAP and non-GAAP EPS due to lower expected revenues for Revlimid and Pomalyst.

Key Takeaways

Bristol Myers Squibb reported second-quarter revenues of $11.2 billion, a 6% decrease year-over-year, primarily due to a rapid decline in Revlimid sales. The company is revising its full-year financial guidance due to this decline but reaffirms its 2020-2025 financial targets and announces a $4 billion accelerated share repurchase agreement.

Second quarter revenues were reported at $11.2 billion.

GAAP earnings per share were $0.99, and non-GAAP EPS was $1.75, including a net impact of ($0.05) per share due to acquired IPRD charges and licensing income.

Revenue growth for in-line products and the new product portfolio was 4%.

The outlook for total revenues has been revised to a low single-digit decline, GAAP EPS to $3.72-$4.02, and non-GAAP EPS to $7.35-$7.65 due to lower expected revenues for Revlimid and Pomalyst.

Total Revenue
$11.2B
Previous year: $11.9B
-5.6%
EPS
$1.75
Previous year: $1.93
-9.3%
Gross Profit
$8.35B
Previous year: $9.17B
-8.9%
Cash and Equivalents
$8.37B
Previous year: $10.8B
-22.1%
Free Cash Flow
$1.63B
Previous year: $1.99B
-18.1%
Total Assets
$93.5B
Previous year: $100B
-6.8%

Bristol-Myers Squibb

Bristol-Myers Squibb

Bristol-Myers Squibb Revenue by Segment

Forward Guidance

Bristol Myers Squibb is revising its 2023 guidance, adjusting the outlook for total revenues and GAAP and non-GAAP EPS primarily due to lower than expected sales of Revlimid, and to a lesser extent, Pomalyst.

Positive Outlook

  • Total revenues are expected to decline by a low single-digit.
  • Total revenues excluding foreign exchange impact are expected to decline by a low single-digit.
  • Gross margin is projected to be approximately 76%.
  • Operating expenses are expected to decline by a low single-digit.
  • The effective tax rate is anticipated to be around 16%.

Challenges Ahead

  • Revenues from Revlimid are now expected to be approximately $5.5 billion.
  • GAAP EPS is projected to be between $3.72 and $4.02.
  • Non-GAAP EPS is projected to be between $7.35 and $7.65.
  • The guidance excludes the impact of any potential future strategic acquisitions and divestitures.
  • The guidance is subject to risks and uncertainties applicable to all forward-looking statements.

Revenue & Expenses

Visualization of income flow from segment revenue to net income