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Based in Princeton, New Jersey, Bristol-Myers Squibb Company (BMY), with a market cap of $82 billion, is a global leader in biopharmaceuticals, specializing in treatments for serious diseases spanning oncology, immunology, cardiovascular, and fibrotic conditions. The biotech giant is expected to unveil its fiscal Q2 earnings results before the market opens on Friday, Jul. 26.
Prior to the event, analysts anticipate BMY to report a profit of $1.64 per share, reflecting a decrease of 6.3% from $1.75 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on one other occasion. The company reported a loss per share of $4.40 in the most recent quarter, surpassing the consensus loss per share estimate by a 3.3% margin due to lower charges for acquired research and development.
For fiscal 2024, analysts expect BMY to report EPS of $0.58, marking a substantial decline of 92.3% from $7.51 recorded in fiscal 2023. However, the outlook for fiscal 2025 is promising, with EPS expected to surge by a significant margin, reaching $7.06.
On a YTD basis, BMY's shares have fallen 21.2%, lagging behind both the S&P 500 Index's ($SPX) 17.7% gain and the US Pharmaceuticals iShares ETF's (IHE) 11% increase over the same period.
The decline in Bristol-Myers Squibb's stock price over the past year is primarily driven by concerns over impending patent expirations for key drugs like Eliquis and Opdivo, which together account for a significant portion of its revenue. Investors are cautious about the company's ability to replace this lost revenue despite its efforts in developing new drugs.
In addition, the stock saw a significant decline of 8.5% on Apr. 25 primarily due to disappointing Q1 earnings and a drastic downward revision in its full-year 2024 earnings guidance, stemming from costs related to its acquisition of Karuna Therapeutics and collaboration with SystImmune.
Analysts' consensus rating on Bristol-Myers Squibb stock is cautious, with a "Hold" rating overall. Out of 22 analysts covering the stock, opinions include four "Strong Buys," one "Moderate Buy," 16 "Holds," and one "Strong Sell," a consensus that has remained steady over the past three months. The average analyst price target for BMY is $53.95, suggesting a modest potential upside of 33.3% from current levels.
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.
