Sep 30, 2023

Bristol-Myers Squibb Q3 2023 Earnings Report

Reported a decrease in revenue due to lower sales of Revlimid, partially offset by new product portfolio and in-line products, and achieved key clinical and regulatory milestones.

Key Takeaways

Bristol Myers Squibb reported third-quarter revenues of $11.0 billion, a decrease of 2% compared to the same period last year. The decline was primarily due to lower sales of Revlimid, which was partially offset by growth in the new product portfolio and in-line products. The company reported GAAP earnings per share of $0.93 and non-GAAP EPS of $2.00.

Third quarter revenues were reported at $11.0 billion.

GAAP earnings per share were $0.93, and non-GAAP EPS was $2.00.

Revenue growth for in-line products and the new product portfolio was 8%, or 7% when adjusted for foreign exchange.

Oncology portfolio was strengthened with the planned acquisition of Mirati Therapeutics.

Total Revenue
$11B
Previous year: $11.2B
-2.2%
EPS
$2
Previous year: $1.99
+0.5%
Gross Profit
$8.46B
Previous year: $8.87B
-4.6%
Cash and Equivalents
$7.69B
Previous year: $7.73B
-0.6%
Free Cash Flow
$4.41B
Previous year: $3.44B
+28.2%
Total Assets
$91.3B
Previous year: $9.03B
+911.0%

Bristol-Myers Squibb

Bristol-Myers Squibb

Bristol-Myers Squibb Revenue by Segment

Forward Guidance

Bristol Myers Squibb is revising its 2023 GAAP and Non-GAAP line item guidance. Adjusting total revenues for Revlimid to be approximately $6.0 billion. Adjusting GAAP diluted EPS range to $3.68-$3.83 and raising midpoint of Non-GAAP diluted EPS range, with the new range being $7.50-$7.65.

Positive Outlook

  • Reaffirms low-to-mid single digit revenue CAGR1 from 2020-2025
  • Reaffirms low double-digit revenue CAGR1 Ex-Revlimid/Pomalyst from 2020-2025
  • Reaffirms $8-$10 billion growth from in-line brands2 from 2020-2025
  • Adjusts Non-GAAP operating margin target to >37% through 2025
  • Adjusting GAAP tax rate to approximately 11% and adjusting Non-GAAP tax rate to approximately 15.5%

Challenges Ahead

  • Adjusting total revenues for Revlimid to be approximately $6.0 billion.
  • Adjusts GAAP diluted EPS range to $3.68-$3.83
  • The 2023 financial guidance excludes the impact of any potential future strategic acquisitions, including the planned acquisition of Mirati, and divestitures, and any specified items that have not yet been identified and quantified and the impact of future Acquired IPRD charges, including the charge associated with the re-acquisition of rights for mavacamten in China and certain other Asian territories.
  • The company will no longer include GAAP financial guidance beginning with the presentation of the fourth quarter and year-end 2023 results.
  • Adjusts Non-GAAP operating margin target to >37% through 2025

Revenue & Expenses

Visualization of income flow from segment revenue to net income