Bristol-Myers Squibb Stock Falls After Weak Guidance

Shares of Bristol-Myers Squibb (BMY) fell on Thursday following the company's fourth quarter and full-year financial results for 2024, which included weak guidance for the coming year. The stock price dropped by around 3% in after-hours trading, reflecting investor concerns about the company's outlook.

Bristol-Myers Squibb reported fourth quarter revenues of $12.3 billion, an 8% increase (+9% adjusting for foreign exchange) compared to the same period last year. However, the company's guidance for 2025 was lower than expected, with revenues projected to be in the range of $47.5 billion to $49.5 billion, compared to the consensus estimate of $50.5 billion. The company also reported a GAAP loss per share of $(4.41) and a non-GAAP EPS of $1.15, which includes the net impact of $(6.39) per share for GAAP and non-GAAP EPS due to acquired IPRD charges and licensing income.

The company's weak guidance was primarily driven by two factors: the impact of generics on key drugs and the company's strategic productivity initiative. The impact of generics on drugs such as Sprycel, Revlimid, Abraxane, and Pomalyst offset the growth in revenues from the Growth Portfolio and Eliquis. Additionally, the company's strategic productivity initiative, which aims to deliver an additional $2 billion in cost savings by the end of 2027, may lead to short-term headwinds, such as job cuts and reduced R&D spending.

Despite the weak guidance, Bristol-Myers Squibb achieved multiple clinical and regulatory milestones in the fourth quarter. The company received U.S. approval for Opdivo Qvantig, a new formulation of Opdivo (nivolumab), and launched Cobenfy, a new medication for the treatment of schizophrenia in adults. The company also received positive CHMP opinions for Opdivo plus Yervoy in advanced HCC and Breyanzi in relapsed or refractory follicular lymphoma, which could potentially expand the use of these drugs in the European Union.



Analysts have reacted to the news, with some expressing concerns about the company's future performance. However, others have noted that the company's pipeline and long-term growth prospects remain strong. Truist analyst Gregg Gilbert, for example, upgraded the stock to Buy from Hold and raised his target price on Bristol shares to $74 from $66, citing the company's development pipeline and the potential value of its drug programs in clinical development.



In conclusion, Bristol-Myers Squibb's stock fell after the company reported weak guidance for 2025. The company's strategic productivity initiative and the impact of generics on key drugs contributed to the weak outlook. However, the company's pipeline and long-term growth prospects remain strong, with analysts expressing confidence in the company's future performance. As the company works to navigate these challenges, investors will be watching closely to see how Bristol-Myers Squibb's strategic initiatives and pipeline developments unfold.