Bristol-Myers Squibb Co (NYSE:BMY) stock was down today following the release of its earnings report for the third quarter of 2017.
The bad news for BMY stock starts with earnings per share of 75 cents for the third quarter of the year. This is down from its earnings per share of 77 cents from the same time last year. It also came in below Wall Street’s earnings per share estimate of 77 cents for the quarter.
Bristol-Myers Squibb Co also reported net income of $856 million in the third quarter of 2017. This is a drop from its net income of $1.22 billion that was reported in the third quarter of 2016.
Bristol-Myers Squibb Co says that its gross margin as a percentage of revenue was down to 70.1% from 73.5% during the quarter. It attributes this decline to product mix and an inventory charge. The biopharmaceutical company also saw its research and development costs increase 36% to $1.5 billion during the quarter.
Bristol-Myers Squibb Co’s revenue of $5.25 billion in the third quarter of the year wasn’t a blow to BMY stock. It was higher than the $4.92 billion in revenue reported in the same period of the year prior. The company’s revenue was also able to beat out analysts’ revenue estimate of $5.20 billion for the third quarter of 2017.
BMY also notes an update to its guidance for the full year of 2017. The company says it is increasing its earnings per share guidance range from $2.90 to $3.00 to between $2.95 and $3.05. Wall Street is looking for earnings per share of $2.99 for the year.
BMY stock was down 3% as of noon Thursday, but is up 5% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.
