Bristol-Myers Squibb Company
BMY
is scheduled to report first-quarter 2022 results on Apr 29, before market open.
The company’s shares have gained 21.2% in the year so far against the
industry
‘s decline of 17.3%.
Image Source: Zacks Investment Research
Bristol-Myers beat earnings estimates in three of the last four quarters and missed in one, the average surprise being 1.01%. In the last reported quarter, the company met expectations.
What Our Model Predicts
Our proven model predicts an earnings beat for Bristol-Myers this time around. The combination of a positive
Earnings ESP
and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter
.
Earnings ESP
: Earnings ESP for Bristol-Myers is +1.57%, as the Zacks Consensus Estimate is pegged at $1.92 and the Most Accurate Estimate stands at $1.95.
Zacks Rank
: The company currently carries a Zacks Rank #3.
Bristol Myers Squibb Company Price, Consensus and EPS Surprise
Bristol Myers Squibb Company price-consensus-eps-surprise-chart
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Bristol Myers Squibb Company Quote
Factors at Play
Bristol-Myers’ multiple myeloma (MM) drug, Revlimid (added with erstwhile Celgene’s acquisition), was the top revenue generator in the fourth quarter with sales of $3.3 billion, up 1% year over year on demand for triplet-based therapies and increasing treatment duration. However, demand has likely been hit in the to-be-reported quarter due to generic competition. The Zacks Consensus Estimate for sales of the drug stands at $2.5 billion.
Blood thinner drug, Eliquis, was also one of the top revenue generators in the last reported quarter, with sales of $2.7 billion, up 18% year over year. The solid performance of the drug in 2021 is likely to have continued in the to-be-reported quarter, driven by market share increases. The Zacks Consensus Estimate for sales of the drug stands at $3.1 billion.
Sales of key immuno-oncology drug, Opdivo, revived in 2021 following a slowdown and registered a 11% increase to $2 billion in the previous quarter. Label expansions in recent months (in advanced renal cell carcinoma with Cabometyx and gastric cancer) are likely to have boosted sales of Opdivo, which is approved for multiple cancer indications. The Zacks Consensus Estimate for sales of the drug stands at $2 billion.
The FDA recently approved a new, first-in-class, fixed-dose combination of Opdivo and relatlimab (novel LAG-3-blocking antibody) administered as a single intravenous infusion for the treatment of adult and pediatric patients 12 years of age or older with unresectable or metastatic melanoma (a kind of skin cancer). The drug is approved under the brand name Opdualag.
Arthritis drug, Orencia, raked in sales of $864 million in the fourth quarter, flat year over year. The first quarter is likely to have witnessed a decline in growth levels. The Zacks Consensus Estimate for sales of the drug stands at $752 million.
Pomalyst posted a decent performance in the fourth quarter and generated sales of $854 million, up 2% year over year. The trend is likely to have prevailed in the first quarter as well.
Melanoma drug, Yervoy, contributed $545 million to the top line in the previous quarter, up 16% year over year. The first quarter is likely to have experienced increased contribution on label expansions. The Zacks Consensus Estimate for sales of the drug stands at $540 million.
Abraxane contributed $305 million to the top line in the previous quarter, up 3%. Similar levels of contribution are expected to have been witnessed in the first quarter.
Newly approved drugs like Reblozyl and Zeposia are also likely to have boosted sales in the first quarter. Reblozyl sales came in at $151 million, and the drug is likely to have witnessed sequential growth in the quarter.
Operating expenses are likely to have increased in the first quarter due to costs associated with the broader portfolio.
Key Recent Developments
Bristol Myers and
Nektar Therapeutics
NKTR
announced the joint decision to end the global clinical development program for bempegaldesleukin (BEMPEG) in combination with the latter’s blockbuster immuno-oncology drug Opdivo. The decision was based on disappointing results from pre-planned analyses of two late-stage clinical studies of bempegaldesleukin in combination with Opdivo in renal cell carcinoma and bladder cancer. Nektar and Bristol Myers collaborated in 2018 to evaluate the combination. The companies have now decided to discontinue these studies and all others in the program.
The European Commission (“EC”) approved a label expansion of Opdivo-based combinations for several indications. The drug has been approved in combination with fluoropyrimidine- and platinum-based chemotherapy for the first-line treatment of adult patients with unresectable advanced, recurrent or metastatic esophageal squamous cell carcinoma (ESCC) with tumor cell PD-L1 expression ≥ 1%.
The regulatory body also approved Opdivo in combination with Yervoy (ipilimumab) for the first-line treatment of adult patients with unresectable advanced, recurrent or metastatic ESCC with tumor cell PD-L1 expression ≥ 1%. The EC also approved Opdivo for the adjuvant treatment of adults with muscle-invasive urothelial carcinoma with tumor cell PD-L1 expression ≥1% who are at a high risk of recurrence after undergoing radical resection.
Other Stocks to Consider
Here are some other stocks you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter.
Sanofi
SNY
has an Earnings ESP of +0.89% and a Zacks Rank #3. Sanofi boasts an excellent track record, having topped earnings estimates in each of the last four quarters. It pulled off a four-quarter earnings surprise of 8.80%, on average. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
AstraZeneca
AZN
has an Earnings ESP of +2.56% and a Zacks Rank #3.
AstraZeneca has a good record, having topped earnings estimates in three of the past four quarters. AZN pulled off a four-quarter earnings surprise of 2.22%, on average.
Stay on top of upcoming earnings announcements with the
Zacks Earnings Calendar
.
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