Bristol-Myers Squibb (BMY, Financial) is a global biopharma company firmly focused to discover, develop and deliver innovative medicines to patients with serious diseases. Around the world, their medicines help millions of people in their fight against such diseases as cancer, cardiovascular disease, hepatitis B and hepatitis C, HIV/AIDS and rheumatoid arthritis.Ă‚
The company’s first quarter results witnessed strong sales growth. There was a significant progress in bringing the promise of Immuno-Oncology across multiple types of cancer to patients. The company increased its GAAP EPS guidance.
First quarter results
The revenues during the quarter were $4.4 billion, which marked an increase of 9% from the prior year quarter.
Global revenues increased by 11% adjusted for foreign exchange impact.
U.S. revenues increased by 24% from the prior year quarter and was $2.5 billion.
International revenues decreased by 7%. Gross margin as a percentage of revenues was 76.0% in the quarter.
Marketing, selling and administrative expenses increased by 4% and were $1.1 billion.
Research and development expenses increased by 12% and were $1.1 billion in the quarter.
The company reported non-GAAP net earnings attributable to Bristol-Myers Squibb of $1.2 billion, or 74 cents per share in the first quarter, which was $1.2 billion, or 71 cents per share during the prior year quarter.
Dividends
The company declared a quarterly dividend of 38 cents per share. The next quarterly dividend will be payable on Aug. 1 to stockholders of record at the close of business on July 1.
Expectations for 2016
| Metrics | Range |
| GAAP EPS | To range between $2.37 to $2.47 |
| Non-GAAP EPS | To range between $2.50 to $2.60 |
Strong attributes of the company:
- In recent years the company’s total return to the shareholders, including dividends, has been amongst the best in the industry.
- The company has paid dividends to stockholders for more than 300 consecutive quarters.
- It delivered 12 new medicines to patients in the past seven years.
- Innovative alliances, partnerships and acquisitions further enhances internal capabilities.
Focus:
- Concentrating on customers’ needs.
- Giving maximum priority to accelerating pipeline development.
- Delivering sales growth.
- Continuing to manage costs.
- The company is integrating comprehensive energy management, pollution controls and other practices to reduce environmental impacts.
On a concluding note
The company has outperformed most mega pharma companies, diversified companies and pure biotech companies. Bristol-Myers Squibb has been recognized year after year as one of the best companies for female executives and working mothers. It has also been recognized by the Human Rights Campaign Foundation’s Corporate Equality Index for achieving a perfect score for four consecutive years. The company is growing its businesses and advancing its pipeline. It has a decent dividend yield. I am pretty bullish about this company and I think adding this company may reap shareholder returns.
Disclosure: I do not hold any position in the company.
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