Patent Cliff Sends Bristol-Myers’ Q2 Earnings Tumbling 28%; Forecast Lowered on Acquisition Costs (BMY)
Pharmaceuticals giant Bristol-Myers Squibb Co. ( BMY ) on Wednesday posted a sharp downturn in second quarter earnings, hurt by expiring drug patents.
The New York-based company reported second quarter net income of $645 million, or 38 cents per share, compared with $902 million, or 52 cents per share, in the year-ago period. Excluding special items, adjusted profit was 48 cents per share.
Revenue fell 18% from last year to $4.44 billion.
On average, Wall Street analysts expected a matching profit of 48 cents per share, on nearly matching revenue of $4.45 billion.
Looking ahead, BMY said it now expects full-year earnings to range from $1.78 to $1.88 per share, down from $1.90 to $2 previously. The company blamed acquisition costs for the lowered guidance, but left its adjusted outlook unchanged.
Bristol-Myers shares were mostly flat in premarket trading Wednesday.
The Bottom Line
We have been recommending shares of Bristol-Myers ( BMY ) since Aug.25, 2009, when the stock was trading at $22.58. The company has a 3.92% dividend yield, based on last night's closing stock price of $34.73.
Bristol-Myers Squibb Co. ( BMY ) is a "Recommended" dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.
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