Bristol-Myers Squibb (BMY) Tops Q4 EPS by 28c, Offers FY Guidance, Approves $5B Buyback
Bristol-Myers Squibb (NYSE: BMY) reported Q4 EPS of $1.22, $0.28 better than the analyst estimate of $0.94. Revenue for the quarter came in at $7.9 billion versus the consensus estimate of $6.19 billion.
Bristol-Myers Squibb maintains a balanced approach to capital allocation focused on future business development and sourcing external innovation as a priority, de-leveraging in the near term to maintain strong investment grade credit ratings and less than 1.5x debt/EBITDA by 2023, planning for annual dividend increases, subject to board approval, and disciplined share repurchases.
In that context, the company today announced its board of directors approved an increase of $5 billion to the share repurchase authorization for the company’s common stock. This is incremental to the current share repurchase program announced in October 2016 under which the company has approximately $1 billion remaining and increases the company’s total outstanding share repurchase authorization under the company’s share repurchase program to approximately $6 billion.
The specific timing and number of shares repurchased will be determined by the company’s management at its discretion and will vary based on market conditions, securities law limitations and other factors. The share repurchase program does not obligate the company to repurchase any specific number of shares, does not have a specific expiration date and may be suspended or discontinued at any time. The repurchases may be effected through a combination of one or more open market repurchases, privately negotiated transactions, transactions structured through investment banking institutions and other derivative transactions.
GUIDANCE:
Bristol-Myers Squibb sees FY2020 EPS of $6.00-$6.20, versus the consensus of $6.16. Bristol-Myers Squibb sees FY2020 revenue of $40.5-42.5 billion, versus the consensus of $42.2 billion.
Bristol-Myers Squibb is providing 2020 GAAP EPS guidance range of $0.75 to $0.95 and non-GAAP EPS guidance range of $6.00 to $6.20. In addition, the company is providing for 2021, a non-GAAP EPS guidance range of $7.15 to $7.45. Both GAAP and non-GAAP guidance for 2020 and non-GAAP guidance for 2021 includes the impact of the Celgene acquisition and the Otezla divestiture and assume current exchange rates. Key 2020 GAAP and non-GAAP line-item guidance assumptions are:
| GAAP | non-GAAP | ||||
Revenue | $40.5B - $42.5B | $40.5B - $42.5B | ||||
Gross margin as a percentage of revenue | Approximately 74% | Approximately 80% | ||||
Marketing, selling, and administrative expenses | $6.8B - $7.0B | $6.8B - $7.0B | ||||
Research and development expenses | $10.1B - $10.3B | $9.6B - $9.8B | ||||
Other (income)/expense | $0.6B - $0.7B | ($0.1B) - ($0.2B) | ||||
Effective tax rate | Approximately 43% | Approximately 17% | ||||
Weighted average diluted shares | Approximately 2.3 Billion | Approximately 2.3 Billion | ||||
EPS guidance | $0.75 - $0.95 | $6.00 - $6.20 |
For earnings history and earnings-related data on Bristol-Myers Squibb (BMY) click here.