Bristol Myers Squibb (BMY)

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BMY Q3 ANALYSIS

In the third quarter, even as revenue jumped 7%, net earnings came crashing down by about 30%. Even their safely adjusted EPS fell 3%.

It's been an up-and-down kind of year for Bristol-Myers Squibb. Early this year, we investors were concerned after BMY opted not to pursue accelerated approval for a combination of Opdivo and Yervoy in first-line non-small cell lung cancer. Those worries largely evaporated, though, and BMS stock eventually went on to generate nice year-to-date gains.

Now, however, worries are resurfacing. After they announced their third-quarter results last week Thursday, there was an immediate drop in its share price. Here are the highlights of those results:


Note: This is part of Q3 BMY Earnings Coverage. View Full Infographic Here.

There are too many uncertainties for its pipeline candidates and competition from others in the market.

Despite a few bumps in the road over the last year or so for Opdivo, it's still a huge blockbuster and has a bright future ahead of it. The drug might even rank as the second-highest-selling cancer drug in the world by 2022 with annual revenue of $9.9 billion. The momentum for Eliquis also continues to be impressive.

The chief concern with Bristol-Myers Squibb, however, is that its pipeline is skewed toward early- and mid-stage assets. But with Opdivo and Eliquis performing well, that's not something to lose sleep over. I won't say that BMS is the best pharma stock on the market. It isn't. However, the company has solid prospects over the long run. An earnings miss in the third quarter doesn't change those prospects at all.



Note: This is part of Q3 BMY Earnings Coverage. View Full Infographic Here.

As you can see, all is green and improving for the worldwide product sales.

So, now I ask you: Should you be worried for BMY?