Earnings Analysis for BMY
Revenue Analysis
Total and Operating Revenue: Over the period observed, BMY’s total revenue showcased fluctuating trends, achieving $11.865 billion in the latest quarter of 2024, which demonstrates an increase from $11.377 billion in Q1 2023. Meanwhile, its operating revenue for these quarters also followed a similar trend.
Gross Profit Margins: The gross profit in the latest quarter stood at $8.933 billion against the cost of revenue which was $2.932 billion, pointing towards a strong gross Margin relative to preceding quarters. In earlier quarters, gross profit and margins were slightly lower.
Cost Management
Cost of Revenue: Starting at $2.556 billion in Q1 2023, the cost of revenue increased to $2.932 billion by the first quarter of 2024, indicating raised expenditure associated with revenue generation. This could be reflective of either inflationary pressures or increased output.
Total Expenses: There was a noticeable decrease in total expenses from $10.351 billion in Q1 2024 back to $10.925 billion in Q1 2023, suggesting improved efficiency or cost management strategies in recent quarters.
Profitability Analysis
EBITDA: EBITDA experienced significant dips, most notably, a sharp decline from earnings before taxes and other items was positve in earlier quarters and became sharply negative at -$8.559 billion in Q1 2024.
Operating Income: The operating income was $1.514 billion in the latest 2024 data, a rebound from more modest figures observed in 2023. However, this is also impacted by unusual expenses and revenues.
Pretax Income: BMY’s pretax income was notably higher in earlier quarters but faced a substantial hit in Q1 2024 at -$11.516 billion, suggesting a presence of significant unusual expenses.
Net Income: Correspondingly, net income was heavily negative at -$11.911 billion in Q1 2024, in contrast to positive figures in all quarters of 2023.
Cash Flow Indicators
Reconciled Depreciation: Depreciation and amortization charges ranged from about $2.25 billion to $2.44 billion over the past quarters, indicating substantial, consistent investment in assets whose value depreciates.
Interest Expense: Interest expenses remained consistent around $280-$425 million each quarter, depicting ongoing indebtedness.
Taxation
Tax Rate: The nominal tax rate fluctuated between 9.5% and 21%, although these figures have been heavily influenced by various non-operating items.
Tax Provision: The tax provision showed variability, indicating differing profitability before tax and the influence of unusual items on taxable income.
Tax Effect of Unusual Items: Notably, the Q1 2024 saw a heavy negative tax impact from unusual items amounting to -$5.202 billion, suggesting major one-off costs.
Shareholder Metrics
Diluted and Basic EPS: Earnings per Share (EPS) took a harsh dip to -$5.89 in the latest quarter from positive earnings in previous quarters, reflecting the significant loss incurred.
Average Shares: BMY had approximately 2.02 billion shares diluted on average, consistent over the period, highlighting no major equity financing or buy-back activities.
Net Income Available to Common Stockholders: Mirroring net income trends, what was available to shareholders was heavily negative in the latest quarter due to the losses.
Conclusion
The fiscal quarter of 2024 has been significantly challenging for BMY, reflected by deep net losses and negative EBITDA, largely driven by significant unusual expenses. It is crucial for BMY to scrutinize these unusual costs and explore strategies to mitigate similar impacts in the future. Furthermore, maintaining effective cost management and potentially hedging interest rate exposures are recommended strategies moving forward.