Bristol-Myers Beats Zacks Estimate - Analyst Blog

This morning, Bristol-Myers Squibb Company (BMY) reported fourth quarter and full-year results for fiscal 2009.

Quarterly Results

The company earned 47 cents per share in the fourth quarter as opposed to 40 cents in the year-ago quarter. The Zacks Consensus Estimate for the quarter was 43 cents.

Net sales for the quarter came in at $5,033 million against $4,542 million in the year-ago quarter, representing an increase of 10.8%. The increase was primarily attributable to strong sales of Plavix, an anti-platelet blood thinner indicated to reduce the risk of heart attack in patients with atherosclerosis (the build-up of plaque and hardening of the arteries), as well as robust sales of HIV treatment drugs Reyataz and Sustiva.

Global sales of Plavix in the quarter rose 10% to $1.62 billion. Sales of Sustiva in the quarter came in at $358 million, up 19%. Reyataz sales for the quarter stood at $388 million, up 18%, and Baraclude sales came in at $212 million, up 39%. Abilify, used to treat schizophrenia and depression, continued to spearhead the company’s earnings growth, with global sales of $707 million, up 17% from the year-ago quarter. Sales of the rheumatoid arthritis drug Orencia stood at $168 million, up 30%, while the leukemia drug Sprycel registered sales of $119 million, up 38%.

However, cancer drug Erbitux generated sales of $167 million in the reported quarter, down 8%. Furthermore, Onglyza, co-developed with AstraZeneca plc (AZN), contributed approximately $4 million in sales in the quarter.

Marketing, selling and administrative expenses decreased 8% to $1,170 million in the reported quarter. Advertising and product promotion spending for the quarter came in at $334 million as against $356 million in the fourth quarter of 2008. Research and development expenses came in at $1,108 million, compared to $1,121 million in the year-ago quarter.

As of Dec 31, 2009, Bristol-Myers had $9.9 billion in cash, cash equivalents and marketable securities. The effective tax rate on earnings stood at 14.2% for the quarter.

Yearly Results

For the full year 2009, Bristol-Myers earned $1.85 which was above the year-ago earnings of $1.49. The Zacks Consensus Estimate for 2009 was $1.86. Net sales for fiscal 2009 came in at $ $18,808 million, an increase of 6% over fiscal 2008.

Outlook

Bristol-Myers has provided guidance for fiscal 2010. The company expects to earn between $2.15 and $2.25 per share in 2010. The 2010 guidance assumes mid single-digit revenue growth. The Zacks Consensus Estimate for 2010 is $2.20.

Recently, Bristol-Myers sold off its interest in infant formula maker Mead Johnson (MJN). The split-off would enable Bristol-Myers to operate as a fully independent biopharmaceutical company, focusing exclusively on its Pharmaceuticals segment.

Currently, we are Neutral on Bristol-Myers.

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