Bristol Myers Squibb Co. (NYSE:
BMY) is scheduled to report its Q1 2010 results after the market closes on April 28, 2010. A relatively quiet Q1 is anticipated for the major pharma names. With healthcare reform now a reality, questions but limited details on the topic are expected as companies continue to work through the specific impact of the changes on near-term results.There is significantly less focus on BMY's quarter as the most interesting thing being looked ahead at is ‘ipi'. However, an EPS of $0.54 for Q1 2010 is expected, on sales of $4.7 billion.
Bristol-Myers Squibb Company is a global leader in the research and development of innovative lifesaving and life-enhancing treatments for heart disease; high blood pressure; stroke; diabetes; cancer; HIV/AIDS and other infectious diseases; depression, schizophrenia and other mental disorders; pain; and other conditions.
Bristol Myers Squibb Co. posted Q4 2009 net sales from continuing operations of $5 billion, marking an increase of 11%, or 7% excluding foreign exchange impact, compared to 2008. Net sales in the US alone, increased by 11% to $3.1 billion in Q4 2009, when compared to 2008. International sales increased by 11% again, or 2% excluding foreign exchange impact, $1.9 billion. Sales growth in Q4 2009 was primarily led by Plavix (+10%) and Abilify (+17%). Gross margin in this quarter decrease by 90 bps compared to 2008 and SG & A expecses increased 7%, or 2% excluding foreign exchange, to $1.2 billion in Q4 2009 compared to 2008. Net earnings amounted to $8 billion or $4.06 per diluted share compared to net earnings of $1.2 billion or $0.63 per diluted share reported in the same quarter a year ago. The Q4 2009 net earnings included a $7.2 billion after tax gain, or $3.62 per share, attributable to the split-off of Mead Johnson Nutrition Company, which is recorded as a discontinued operation. Cash, cash equivalents and marketable securities were $9.9 billion as of December 31, 2009, representing an increase of $2 billion in Q4 2009.
Analysts' estimates for Q1 2010 range from a low of $0.48 to a high of $0.55, compared to a consensus estimate of $0.51, with number of estimates being 16 and the co-efficient variance 3.77. More than the quarter the focus remain on approaching clinical catalysts (ipilimumab data at ASCO and additional dapagliflozin data at ADA) as well as any updates on the launch of Onglyza (diabetes) and the levels of generic competition Plavix is seeing in key European markets. On March 2, 2010, the Board of Directors of Bristol-Myers Squibb Company declared a quarterly dividend of $0.32 per share on the $.10 par value Common Stock of the corporation payable on May 3, 2010 to stockholders of record at the close of business on April 4, 2010.
The stock closed $25.48 on April 16, 2010 and most analysts' recommend holding this stock with an average price target of $26. Bristol's compelling late-stage pipeline and its near term financial prospects look very appealing. Furthermore, the dividend yield (5%) and possibility of strategic activity (in the long-term) limit downside stock risk.
