Bristol-Myers Squibb Third Quarter Earnings

Bristol-Myers Squibb Company (NYSE:BMY) announced its results for the most recent quarter on October 24, 2012. Bristol-Myers Squibb is a global company that develops, manufactures, and sells pharmaceutical products.

Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: Everything Investors Need To Know About Earnings

The Numbers: Bristol-Myers Squibb's EPS fell in line with analyst expectations of 41 cents per share while revenue of $3.74 billion missed estimates of $4.46 billion. Revenue fell 30.1% from the same period last year. Revenue declined last quarter after shrinking 18.2% to $4.44 billion in the second quarter. Bristol-Myers Squibb reported a net loss of $711 million during the third quarter. The company's loss in the latest quarter comes after the company reported profits in the three prior quarters.



Management Quote: "Bristol-Myers Squibb faced challenges in the third quarter, including the discontinuation of BMS-986094 for the treatment of hepatitis C. I am proud of how we worked through these challenges and made the right decisions for patients," said Lamberto Andreotti, chief executive officer, Bristol-Myers Squibb. "We remain strong and well-positioned for future success as demonstrated by the achievement of regulatory milestones for Eliquis and Orencia, the presentation of long-term survival data for Yervoy, the completion of our acquisition of Amylin, and the performance of our key brands."



Looking Ahead: When earnings estimates stay consistent leading up to earnings season, this usually shows analysts accurately predicted earnings estimates and business is stable. Be cautious though as this may also be a warnings sign that earnings could come at a huge surprise to the upside or downside as analyst did not correctly predict earnings. Steady earnings estimates mean there is not enough change going on with the company to make analysts change their opinions. When earning estimates are steady, investors can look at the revenue trend for a more fundamental indicator. The average estimate for the fiscal year is now $1.92 per share, down from $1.93 60 days ago.