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Big-cap drug stocks Bristol-Myers Squibb ( BMY ) and Celgene ( CELG ) were both rising after their Q1 earnings reports early Thursday, though Celgene initially dropped as it delivered a long-expected guidance cut. Bristol-Myers reported earnings of 74 cents a share, minus one-time items, up 4% from the year-earlier quarter and beating analysts’ consensus by nine cents, according to Thomson Reuters. Revenue rose 9% to $4.39 billion, about $140 million above Wall Street’s average estimate. Bristol-Myers added 20 cents to its full-year EPS guidance, now $2.40 to $2.60. It expects revenue to grow in the low double-digit range, which would be the first time since 1997 that annual sales gained that much. Recently launched cancer drug Opdivo beat sales estimates by a substantial margin — $704 million vs. analysts’ $587 million — up from just $40 million in the year-earlier quarter. Anti-clotting drug Eliquis also handily beat expectations, with sales more than doubling to $734 million. Bristol-Myers stock was up more than 3% in afternoon trading on the stock market today , near 72.50, its highest point since October 1999. Celgene Sales Lag Expectations, But EPS Beats Celgene, meanwhile, reported Q1 sales of $2.51 billion, a 21% gain on last year’s Q1 but almost $60 million below consensus. On the other hand, EPS beat estimates by five cents, rising 23% to $1.32. Celgene added 10 cents to its full-year earnings guidance, now $5.60-$5.70 a share, and raised the low end of its product-sales guidance to $10.75 billion-$11 billion. However, it trimmed its 2017 guidance to account for foreign-exchange headwinds. It now expects sales of $12.7 billion to $13 billion, vs. $13 billion-$14 billion previously. Celgene also cut its EPS target to $6.75-$7.00 from $7.25. The company affirmed its previously issued 2020 guidance. Celgene stock dropped in early trading but was up more than 2%, above 108, by early afternoon Thursday. Wall Street had anticipated the 2017 guidance cut. “Investors will be looking for an update on 2017 guidance following the $700 million to $800 million FX headwind on top-line revenues mentioned on their 4Q 2015 call,” wrote Evercore ISI analyst Mark Schoenebaum in a preview note Wednesday. “Celgene neither revised nor reaffirmed 2017 guidance at that time and may provide an update to their current guidance.” On the conference call with analysts Thursday, Celgene’s management said that on a constant-currency basis, financials are tracking to hit their original targets. Scalper1 News
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