: Bristol Myers Squibb shares drop as key product sales fall short of expectations

Bristol Myers Squibb Co. shares
BMY,
-6.43%

were down more than 4% in early trading on Thursday after the drugmaker reported third-quarter results that topped analysts’ estimates, but some key products fell short of expectations.

The drugmaker posted net income of $1.928 billion, or 93 cents a share, for the third quarter, up from $1.606 billion, or 75 cents a share, in the year-earlier period. Adjusted per-share earnings came to $2, ahead of the $1.76 FactSet consensus. Revenue fell to $10.966 billion from $11.218 billion a year ago but also beat the $10.955 billion FactSet consensus.

Global sales of cancer drug Opdivo came to $2.275 billion, up 11% from the year earlier but falling short of analyst expectations. Melanoma drug Opdualag also missed estimates, with global sales of $166 million. The company pushed back the timeline for its overall new product portfolio to top $10 billion in revenues to 2026, versus previous guidance of 2025.

Worldwide sales of Revlimid, a multiple-myeloma drug that recently lost its market exclusivity, came to $1.429 billion, down 41% from a year earlier but ahead of analyst estimates.

The Internal Revenue Service was “an unlikely savior to an otherwise lacking quarter,” BMO Capital Markets analyst Evan David Seigerman wrote in a note Thursday, noting that the earnings beat was driven largely by changes to IRS income-tax guidance. The company’s effective tax rate dropped to 9.5% in the quarter, down from 27.2%, primarily due to revised IRS guidance regarding deductibility of certain non-U.S. research and development expenses, Bristol Myers Squibb said in a release.

The company raised the midpoint of its full-year adjusted EPS guidance to a range of $7.50 to $7.65, while FactSet is expecting $7.36. Sales are expected to decline in the low-single-digit percentages, unchanged from earlier guidance.

The stock has fallen 21% in the year to date, while the S&P 500
SPX
has gained 9%.

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