Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. NEW YORK ( TheStreet) -- Bristol-Myers Squibb Company (NYSE: BMY) has been reiterated by TheStreet Ratings as a buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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- The gross profit margin for BRISTOL-MYERS SQUIBB CO is currently very high, coming in at 72.63%. Regardless of BMY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 13.24% trails the industry average.
- BRISTOL-MYERS SQUIBB CO's earnings per share declined by 15.8% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, BRISTOL-MYERS SQUIBB CO reported lower earnings of $1.15 versus $2.15 in the prior year. This year, the market expects an improvement in earnings ($1.78 versus $1.15).
- BMY, with its decline in revenue, underperformed when compared the industry average of 1.6%. Since the same quarter one year prior, revenues slightly dropped by 8.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- BMY's share price has surged by 25.69% over the past year, reflecting the market's general trend, despite their weak earnings growth during the last quarter. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Pharmaceuticals industry. The net income has decreased by 16.9% when compared to the same quarter one year ago, dropping from $645.00 million to $536.00 million.
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