Bristol-Myers Squibb Faces EPS Decline Ahead of Earnings Release

Bristol-Myers Squibb is set to announce its Q4 earnings, with expectations indicating a significant EPS drop of 14.1%. Despite this, there is optimism as the company has consistently exceeded past estimates.

Date: 16-01-2025

AI Rating: 4

EPS Analysis: Analysts expect Bristol-Myers Squibb to report an EPS of $1.46 for Q4, which marks a decline of 14.1% compared to the previous year. Moreover, for fiscal 2024, the EPS is projected to plummet significantly to $0.93, an 87.6% decrease from $7.51 in fiscal 2023. However, there are signals of recovery, as EPS is anticipated to rebound to $7.11 in fiscal 2025.

Revenue Growth and Performance: Bristol-Myers has recently shown strong performance with Q3 2024 earnings, reporting an adjusted EPS of $1.80, exceeding estimates, along with total revenue of $11.9 billion, reflecting an 8% year-over-year increase. This was attributed to substantial sales growth in its key products like Eliquis, Reblozyl, and newer offerings. The raised earnings guidance for 2024, projected between $0.75 to $0.95 per share, further emphasizes the company's recovery potential.

Market Performance: Over the past 52 weeks, the stock has underperformed against the S&P 500 index, gaining only 11% compared to the index’s 24% rise, indicating potential investor concern about the company’s growth prospects. However, the company has outperformed the Health Care Select Sector SPDR Fund (XLV), showing some resilience in its sector.

Investor Sentiment: Analysts have a moderately optimistic consensus rating for BMY with multiple “Strong Buy” and “Hold” ratings. The average price target of $59.62 suggests a slight potential upside of 5.5% from current levels, reflecting cautious optimism among investors.

Stocks: BMY