Bristol-Myers Squibb Reports Second Quarter Earnings Results for FY2023
July 28, 2023
🌥️Earnings Overview
On July 27 2023, BRISTOL-MYERS SQUIBB ($NYSE:BMY) reported financial results for the second quarter of FY2023, which ended on June 30 2023. Total revenue for the quarter was USD 11.2 billion, a decrease of 5.6% year over year. Net income saw a 45.8% rise from the same quarter in the preceding year, amounting to USD 2.1 billion.
Price History
The company’s stock opened at $61.0 and closed at $60.7, a significant decrease from the previous closing price of 63.4. This decline could be due to the fact that the company’s report did not meet the expectations of the market. The results indicate that the pharmaceutical giant is not performing as well as expected, which could explain why the stock price dropped.
This could be a cause for concern for investors, and could be why the stock price was down on Thursday. Moving forward, it will be important for the company to focus on controlling their operating costs and increasing profitability if they are to see an increase in their stock price. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Bristol-myers Squibb. More…
| Total Revenues | Net Income | Net Margin |
| 45.19k | 7.96k | 18.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Bristol-myers Squibb. More…
| Operations | Investing | Financing |
| 11.85k | -1.41k | -13.01k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Bristol-myers Squibb. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 93.49k | 61.46k | 15.22 |
Key Ratios Snapshot
Some of the financial key ratios for Bristol-myers Squibb are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.0% | 26.7% | 21.8% |
| FCF Margin | ROE | ROA |
| 23.7% | 19.3% | 6.6% |
Analysis
GoodWhale conducted an analysis of BRISTOL-MYERS SQUIBB‘s wellbeing and the results were quite positive. Our Star Chart showed that BRISTOL-MYERS SQUIBB has a high health score of 8/10 with regard to its cashflows and debt, demonstrating its capability to pay off debt and fund future operations. Furthermore, BRISTOL-MYERS SQUIBB was found to be strong in dividend, growth, and profitability, but weak in asset. Given this, we classified BRISTOL-MYERS SQUIBB as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Given this promising report, we can assume that investors interested in long-term growth will be most interested in BRISTOL-MYERS SQUIBB. With its strong dividend and growth rate combined with a moderate level of risk, BRISTOL-MYERS SQUIBB is an attractive investment opportunity. Additionally, investors looking for short-term gains may also be interested due to its strong profitability and healthy cashflow. More…
Peers
The company was founded in 1887 and is headquartered in New York City. The company’s products are sold in over 100 countries. Bristol-Myers Squibb Co’s competitors include Merck & Co Inc, Amgen Inc, Eli Lilly and Co.
– Merck & Co Inc ($NYSE:MRK)
Merck & Co Inc is a global health care company that offers a wide range of products and services to customers in more than 140 countries. The company has a market cap of 236.25B as of 2022 and a Return on Equity of 28.84%. Merck & Co Inc is a diversified company that operates in four main business segments: Pharmaceuticals, Vaccines, Animal Health, and Consumer Care. The company’s products include prescription and over-the-counter medicines, vaccines, biologic therapies, and consumer and animal health products. Merck & Co Inc is one of the world’s largest pharmaceutical companies and is a leading provider of health care products and services.
– Amgen Inc ($NASDAQ:AMGN)
Amgen Inc is a large biotechnology company with a market cap of 132.76B as of 2022. The company has a strong return on equity of 460.37%. The company focuses on developing and delivering therapies for serious illnesses.
– Eli Lilly and Co ($NYSE:LLY)
Eli Lilly and Co is a pharmaceutical company with a market cap of 312.88B as of 2022. Its return on equity is 45.88%. The company focuses on the discovery, development, manufacture, and sale of pharmaceutical products. It offers products in the areas of endocrinology, diabetes, oncology, immunology, neuroscience, and erectile dysfunction.
Summary
Bristol-Myers Squibb reported their second quarter earnings for FY2023 with total revenue of $11.2 billion, a 5.6% decrease year-over-year.
However, net income increased 45.8% year-over-year to $2.1 billion. The stock price dropped on the day of the earnings report, which may indicate investor skepticism in the company’s performance. With the strong net income growth, investors should consider whether this presents an opportunity to buy at a potentially lower price or if further bearish sentiment is warranted. This could be an opportunity for those who believe in the long-term prospects of the company.
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