Shares of Bristol Myers Squibb (NYSE:BMY) were down 8.3% as of 11:19 a.m. ET on Thursday. The selloff came after the major drugmaker reported its first-quarter results before the market opened.
Bristol Myers Squibb reported first-quarter revenue of $11.9 billion, up 5% from a year ago. The company reported a loss of $5.89 per share under generally accepted accounting principles (GAAP), compared to a profit of $1.07 per share in the year-ago period. It also reported a non-GAAP loss of $4.40 per share, compared to a profit of $2.05 per share in the first quarter of 2023.
Why did investors react so negatively to Bristol Myers Squibb’s update?
Today’s drop in Bristol Myers Squibb’s share price was not due to its first quarter numbers. The company’s revenue came in above the consensus estimate of nearly $11.5 billion. Analysts also expected Bristol Myers Squibb to post a wider loss of $4.44 per share.
Why did investors react so negatively to Bristol Myers Squibb’s update? The drugmaker’s forecast was disappointing.
Bristol Myers Squibb forecast full-year 2024 non-GAAP diluted earnings per share between $0.40 and $0.70. In February, non-GAAP earnings per share were forecast between $7.10 and $7.40. The sharp downward revision in guidance was primarily due to the company’s acquisition of Karuna Therapeutics and a collaboration with SystImmune.
Is Big Pharma Stock a Buy?
Investors looking for short-term gains might be better off waiting in the case of Bristol Myers Squibb. The company is facing patent expiration on two of its blockbuster drugs – Eliquis and Opdivo – in the next three years. However, with a dividend yield of over 5.3%, Bristol Myers Squibb could be attractive to income investors willing to hold the stock for the long term.
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Keith Speights holds positions at Bristol Myers Squibb. The Motley Fool has positions in and recommends Bristol Myers Squibb. The Motley Fool has a disclosure policy.
Why Bristol Myers Squibb Stock Is Sinking Today was originally published by The Motley Fool