Bristol-Myers Squibb Prepares to Announce Q4 Earnings Amid Mixed Market Performance
With a market capitalization of $113.1 billion, Bristol-Myers Squibb Company (BMY) stands as a prominent global biopharmaceutical enterprise. The company is dedicated to creating effective treatments for severe health issues such as cancer, heart disease, and immune disorders. Bristol-Myers has a strong lineup of medications, including Opdivo, Eliquis, and Yervoy, and is poised to release its fiscal Q4 earnings report before the market opens on Thursday, Feb. 6.
Analysts Expect Lower Profits but Positive Trends
Leading up to this earnings announcement, analysts predict that the Princeton, New Jersey-based firm will report a profit of $1.46 per share. This figure marks a decline of 14.1% from the $1.70 per share reported in the same quarter last year. Nonetheless, BMY has consistently exceeded Wall Street’s profit expectations for the last four quarters, with a notable 20.8% beat over the consensus EPS estimate in the last quarter.
Forecasts for the Coming Years
Looking ahead to fiscal 2024, analysts forecast a sharp drop in Bristol-Myers Squibb’s EPS, predicting it will fall to $0.93, an 87.6% decrease from $7.51 in fiscal 2023. However, there are expectations of a significant recovery in fiscal 2025, with EPS projected to rise to $7.11 year-over-year.
BMY’s Performance Compared to Market Trends
In the past year, BMY has not performed as well as the broader market. Its shares have increased by 11%, while the S&P 500 Index ($SPX) has gained nearly 24%. Despite this, BMY’s performance has outpaced the Health Care Select Sector SPDR Fund (XLV), which saw only marginal returns during the same period.
Recent Report Boosts Investor Sentiment
On October 31, shares of Bristol-Myers rose by 5.9% following the release of strong Q3 2024 earnings results. The adjusted EPS of $1.80 surpassed expectations, while total revenue hit $11.9 billion, reflecting an 8% year-over-year increase. Key contributors to this growth included Eliquis and other products such as Reblozyl, Camzyos, and Breyanzi. The company’s updated earnings guidance for 2024, which estimates earnings between $0.75 and $0.95 per share, further fueled positive investor sentiment.
Analytical Recommendations and Price Targets
Among analysts, there is a moderately optimistic consensus rating for BMY stock, classified as a “Moderate Buy.” Out of 25 analysts, there are seven “Strong Buys,” 17 “Holds,” and one “Strong Sell.” This sentiment has shifted slightly more positively compared to three months ago, when only six analysts rated it as a “Strong Buy.” The average price target for BMY stands at $59.62, indicating a potential upside of 5.5% from current stock prices.
On the date of publication, Sohini Mondal 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 here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
