Sep 30, 2020

Bristol-Myers Squibb Q3 2020 Earnings Report

Reported strong product sales, continued pipeline advancement, and robust operating performance

Key Takeaways

Bristol Myers Squibb reported a significant increase in third-quarter revenue, driven by the Celgene acquisition. The company's GAAP EPS was $0.82, and non-GAAP EPS was $1.63. They are also planning to acquire MyoKardia to strengthen cardiovascular franchise.

Third quarter revenues reached $10.5 billion, a 75% increase.

GAAP EPS was reported at $0.82, while non-GAAP EPS reached $1.63.

The company is planning the acquisition of MyoKardia to extend and strengthen the cardiovascular franchise.

Positive results were achieved from the POETYK-PSO-1 trial evaluating deucravacitinib for plaque psoriasis.

Total Revenue
$10.5B
Previous year: $6.01B
+75.5%
EPS
$1.63
Previous year: $1.17
+39.3%
Gross Profit
$8.04B
Previous year: $4.2B
+91.5%
Cash and Equivalents
$19.4B
Previous year: $30.5B
-36.3%
Free Cash Flow
$2.07B
Previous year: $2.37B
-12.7%
Total Assets
$21.7B
Previous year: $57.4B
-62.3%

Bristol-Myers Squibb

Bristol-Myers Squibb

Bristol-Myers Squibb Revenue by Segment

Forward Guidance

Bristol Myers Squibb is increasing its 2020 GAAP EPS guidance range from ($0.06) - $0.09 to $0.47 - $0.57. In addition, the company is raising its 2020 non-GAAP EPS guidance range from $6.10 - $6.25 to $6.25 - $6.35 and reaffirming its 2021 non-GAAP EPS guidance range of $7.15 to $7.45.

Positive Outlook

  • Revenue: $41.5B - $42.0B
  • Gross margin as a percentage of revenue: Approximately 80%
  • Marketing, selling, and administrative expense: Approximately $6.9B
  • Research and development expense: Approximately $9.2B
  • Effective tax rate: Approximately 16%

Revenue & Expenses

Visualization of income flow from segment revenue to net income