Upcoming Earnings Report: What to Expect from Bristol-Myers Squibb

Headquartered in New York, Bristol-Myers Squibb Company (BMY) is a prominent player in the biopharmaceutical industry, dedicated to developing innovative medicines. With a current market cap of $108.2 billion, BMY focuses on addressing significant health challenges in areas such as oncology, immunology, and cardiovascular health. The company is set to release its Q3 earnings before the market opens on Thursday, Oct. 31.

Analysts Predict Decline in Profits

As the earnings report approaches, analysts estimate that BMY will post a profit of $1.52 per share, representing a 24% decrease from $2 earned during the same period last year. Notably, BMY has regularly outperformed Wall Street’s earnings projections in the past four quarters.

Strong Performance Last Quarter

In its previous quarter, Bristol Myers Squibb reported adjusted earnings of $2.07 per share, exceeding the consensus estimate by 26.2%. Factors contributing to this success included robust drug sales and ongoing cost-cutting strategies that enhanced BMY’s performance for Q2 2024.

Future Expectations

Looking ahead to fiscal 2024, analysts project that BMY’s earnings per share (EPS) will drop to $0.75, a significant decline of 90% compared to $7.51 in fiscal 2023.

Stock Performance Analysis

Year-to-date, BMY stock has increased by 4%, which is notably below the S&P 500 Index’s ($SPX) impressive 22.5% gains and the Health Care Select Sector SPDR Fund’s (XLV) 12.4% returns during the same period.

Despite this slower momentum, shares of Bristol-Myers Squibb surged by 11.4% on July 26, following its well-received Q2 earnings report. The company recorded revenues of $12.2 billion, which exceeded the consensus estimate of $11.5 billion.

Analyst Sentiment on BMY Stock

The general view among analysts for BMY stock remains cautious, with an overall “Hold” rating prevailing. Among 24 analysts, five advocate a “Strong Buy” rating, 17 propose a “Hold” recommendation, and two advise a “Strong Sell.” This outlook is somewhat more optimistic compared to three months prior when there were only four “Strong Buy” ratings.

Price Target Analysis

The average price target set by analysts for BMY is $54.09, suggesting a modest potential upside of 1.3% from current levels.

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On the date of publication,

Rashmi Kumari

did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy

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