Bristol-Myers Squibb Co. (BMY) on Thursday reported a turnaround to profit in the fourth quarter, while the year-ago period’s reflected the impact from the U.S. tax reform. Adjusted earnings per share beat analysts’ expectations, while revenues missed estimates. Looking ahead, the company affirmed its earnings outlook for fiscal 2019.
But in a setback for the company, Bristol-Myers also said that after discussions with the U.S. FDA, it is voluntarily withdrawing the U.S. supplemental Biologics License Application or sBLA for the Opdivo and low-dose Yervoy (ipilimumab) combination for treatment of first-line advanced non-small cell lung cancer or NSCLC. The company believes further evidence on the relationship between tumor mutational burden or TMB and PD-L1 is required.
Fourth-quarter net income attributable to the company was $1.19 billion or $0.73 per share, compared to net loss of $2.33 billion or $1.42 per share for the year-ago period.
The year-ago period’s results include the significant transitional impact from U.S. tax reform.
Adjusted net earnings for the quarter were $0.94 per share, compared to $0.68 per share in the previous year. On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.85 per share for the quarter. Analysts’ estimates typically exclude special items.
Total revenues for the quarter grew 10 percent to $5.97 billion from $5.45 billion in the same period a year ago. Revenues increased 12 percent when adjusted for the impact of foreign exchange. Wall Street expected revenues of $5.99 billion for the quarter.
U.S. revenues increased 16 percent to $3.3 billion in the quarter compared to the same period a year ago. International revenues increased 3 percent. When adjusted for foreign exchange impact, international revenues rose 7 percent.
In early January, Bristol-Myers said it agreed to acquire Celgene Corp. (CELG) in a cash and stock transaction with an equity value of about $74 billion.
For fiscal 2019, the company affirmed its outlook for reported earnings per share of $3.75 to $3.85 and adjusted earnings in a range of $4.10 to $4.20 per share. The company projects worldwide revenues to increase in the mid-single digits.
The Street expects the company to report earnings of $4.14 per share for the year on revenues of $24.21 billion.