Bristol-Myers Squibb Company (NYSE: BMY) has confirmed that it will release its Q4 earnings report on Friday, February 4, 2021, aftermarket open.
What to look for
Following the third-quarter earnings release, the company's CEP Giovanni Caforio stated that the company reported strong results because of enhanced adoption of new product portfolio and demand across Bristol Myers Squibb's core segments. In addition, the company expects to report growth in Q4 2021 earnings and revenue attributed to the continued progress of the company's pipeline and commercial execution.
Earnings: Stockearning’s Estimated EPS for Q4 2021 will be $1.84 per share, representing annualized growth of 26%. In the third quarter, the company reported earnings of $0.69 and non-GAAP earnings per share of $2. Historical EPS performance shows that the company has, in the past 12 quarters, topped EPS estimates ten times (83%) and missed twice (16%).
Revenue: in Q4 2021, the company expects to report sales of $12 billion, representing an annualized growth of 8.5%. In the third quarter, the company reported revenue of $11.6 billion, representing a 10% YoY increase driven by Eliquis, Revlimid, Opdivo, and the company's new product portfolio. US sales were up 12$ to $7.3 billion while international revenues grew 8% to 4.3 billion.
Stock movement: BMY shares have gained 11.5% since the company released its third-quarter earnings. But, fascinatingly, BMY shares have been DOWN 26 times out of the past 48 quarters. So, the historical price reaction suggests a 54% probability of the share price going DOWN once the company reports its fiscal Q4 2021 earnings. According to the Stockearning algorithm, the predicted first-day move is 2%, while the predicted move on the seventh day is 2%.
What analysts are saying
JPMorgan analyst Chris Schott reiterated his Buy rating on BMY and set a price target of $80 following a meeting with the company’s management. While Christopher acknowledges investor concerns about new product "controversies" such as the deucravacitinib label and mavacamten FDA action date unpredictability, as well as the company's continuing loss of exclusivity cycle, he believes such concerns are "well reflected" in the stock's current price of eight times estimated 2022 earnings. Additionally, according to Schott, Bristol-Myers has built a comprehensive suite of newly authorized or late-stage pharmaceutical assets that will "meaningfully address" the firm's late-2020s patent cycle. With a variety of new releases and pipeline triggers, the analyst anticipates the stock returning in 2022.
Goldman Sachs analyst Chris Shibutani commenced coverage of BMY with a Buy rating and set a price target of $72. The analyst believes the shares are at an appealing entry position because current prices reflect "overly gloomy views" on the company's future product launches and significant pipeline assets. His deucravacitinib and mavacamten peak sales projections are higher than the industry average. In addition, Shibutani writes in a research note that Bristol's intentions to reinforce and expand value for the Opdivo/immuno-oncology business "are also underappreciated."
Wells Fargo analyst Mohit Bansal also commenced coverage on BMY with a Hold rating and price target of $58. Bristol faces "challenges ahead," according to the analyst, who believes that continual patent losses would result in a "choppy" near-term commercial picture. He forecasts greater erosion in Hematology than the market expects, and he believes the firm's pipeline "may not be enough" to offset the extent of patent loss by 2030.
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