Biotech and pharmaceutical giant Bristol-Myers Squibb Co (NYSE:BMY) this morning posted market-beating Q3 earnings results and announced a restructuring plan it hopes can accelerate the development of new drugs.
The New York City-based company reported Q3 EPS of $0.77, which was much better than Wall Street’s expectations for $0.65. Revenue surged 21% from last year to $4.92 billion, also topping estimates of $4.8 billion.
U.S. revenues jumped 36% to $2.8 billion in the latest period, while international sales rose a more modest 5% (or 7% when disregarding currency translation effects).
BMY noted that sales of cancer treatment Opdivo rocketed 202% to $920 million in Q3, which was just shy of expectations. Meanwhile, melanoma drug Yervoy sales rose 19% to $285 million, beating estimates.
Looking ahead, Bristol-Myers boosted its full-year 2016 EPS forecast to a range of $2.80-2.90, up from prior guidance of $2.55-2.65. That new range would easily top Wall Street’s view of $2.63 per share for the year. For fiscal 2017, BMY sees EPS of $2.85-3.05, which straddles analysts’ $2.92 estimate.
Bristol-Myers Squibb also announced a new $3 billion share buyback program in addition to its old program, which still has $1.1 billion remaining on it.
The company also said it would reorganize some units to help drive faster growth:
Bristol-Myers Squibb announced an evolution of its operating model to drive the company’s continued success in the near and long term through a more focused investment in commercial opportunities against key brands and markets, a competitive and more agile R&D organization that can accelerate the pipeline, streamlined operations and realigned manufacturing capabilities that broaden biologics capabilities to reflect current and future portfolio. The new operating model will enable the company to deliver the strategic, financial and operational flexibility necessary to invest in the highest priorities across the company.
Bristol-Myers shares rose $1.81 (+3.67%) to $51.10 in premarket trading Thursday. Prior to today’s report, BMY had fallen 28.35% year-to-date.