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
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