Bristol-Myers Squibb Company
BMY
is scheduled to report fourth-quarter 2021 results on Feb 4, before market open.
The company’s shares have gained 4.3% in the past year against the
industry
‘s decline of 38.8%.
Image Source: Zacks Investment Research
Bristol-Myers has had a pretty decent track record, beating earnings estimates in three of the last four quarters and missing in one, the average surprise being 2.65%. In the last reported quarter, the company beat earnings by 4.71%.
Factors at Play
Bristol-Myers’ multiple myeloma (MM) drug, Revlimid (added with erstwhile Celgene’s acquisition), was the top revenue generator in the third quarter with sales of $3.3 billion, up 11% year over year, driven by demand for triplet-based therapies and increasing treatment duration. Demand has likely been strong in the to-be-reported quarter as the global environment normalizes. The Zacks Consensus Estimate for sales of the drug stands at $3.4 billion.
Blood thinner drug, Eliquis, was also one of the top revenue generators in the last reported quarter with sales of $2.4 billion, up 15% year over year. The solid performance of the drug in the first nine months of 2021 has most likely continued in the to-be-reported quarter, driven by market share increases. The Zacks Consensus Estimate for sales of the drug stands at $2.5 billion.
Sales of key immuno-oncology drug, Opdivo, revived in 2021 following a slowdown and registered a 7% increase to $1.9 billion in the third quarter. Label expansions in recent months (in advanced renal cell carcinoma with Cabometyx and gastric cancer) have most likely boosted sales of Opdivo, which is approved for multiple cancer indications. The Zacks Consensus Estimate for sales of the drug stands at $2 billion.
Arthritis drug, Orencia, raked in sales of $870 million in the third quarter, up 5%. The fourth quarter is likely to have witnessed similar growth levels. The Zacks Consensus Estimate for sales of the drug stands at $908 million.
Pomalyst posted a strong performance in the third quarter and generated sales of $851 million, up 10% year over year. The trend has most likely prevailed in the fourth quarter as well.
Melanoma drug, Yervoy, contributed $515 million to the top line in the previous quarter, up 15% year over year. Similar levels of contribution have most likely been witnessed in the fourth quarter. The Zacks Consensus Estimate for sales of the drug stands at $541 million.
Abraxane contributed $266 million to the top line in the previous quarter, down 22%. Similar levels of contribution have most likely been witnessed in the fourth quarter.
Newly approved drugs like Reblozyl for the treatment of patients with anemia, failing an erythropoiesis-stimulating agent and requiring two or more red blood cell (RBC) units over eight weeks in adults with very low-to-intermediate-risk MDS-RS or with myelodysplastic/myeloproliferative neoplasm with ring sideroblasts and thrombocytosis might have boosted sales. Also, approval for Zeposia (ozanimod) for treating adults with relapsing forms of multiple sclerosis (RMS), including clinically isolated syndrome, relapsing-remitting disease and active secondary progressive disease, has also likely resulted in incremental sales. Reblozyl sales came in at $160 million, and the drug has not likely witnessed sequential growth in the quarter.
In November, the European Commission granted a Marketing Authorization to Zeposia for the treatment of adults with moderately to severely active ulcerative colitis (UC) who have had an inadequate response.
Operating expenses are likely to have increased in the fourth quarter due to costs associated with the broader portfolio.
Key Recent Developments
The FDA extended the review of the new drug application (NDA) for mavacamten for the treatment of patients with symptomatic obstructive hypertrophic cardiomyopathy (oHCM) to Apr 28, 2022, to get sufficient time to review information pertaining to updates to the proposed Risk Evaluation Mitigation Strategy (REMS). Investors will follow any progress in that regard.
In December, the board of directors declared a quarterly dividend of 54 cents per share, up 10.2% over last year’s rate of 49 cents. The dividend will be paid out on Feb 1, 2022, to stockholders of record at the close of business on Jan 7, 2022. The annual dividend rate for fiscal 2022 is $2.16 per share on this rate. Concurrently, the board authorized the repurchase of an additional $15 billion of common stock.
Earnings Whispers
Our proven model does not conclusively predict 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. That is not the case here, as you will see below. 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 -1.00% as the Zacks Consensus Estimate is pegged at $1.84 while the Most Accurate Estimate stands at $1.82.
Zacks Rank
: It currently carries a Zacks Rank #4 (Sell).
Bristol Myers Squibb Company Price and EPS Surprise
Bristol Myers Squibb Company price-eps-surprise
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Bristol Myers Squibb Company Quote
Stocks to Consider
Here are some stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.
Pfizer
PFE
has an Earnings ESP of +3.18% and a Zacks Rank #1. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Pfizer boasts a good track record, having topped earnings estimates in three of the last four quarters. Pfizer pulled off a four-quarter earnings surprise of 10.85%, on average.
Amgen
AMGN
has an Earnings ESP of +1.49% and a Zacks Rank #3.
Amgen topped earnings estimates in three of the last four quarters. Amgen delivered a four-quarter earnings surprise of 5.65%, on average.
AbbVie
ABBV
has an Earnings ESP of +0.08% and a Zacks Rank #3.
AbbVie topped earnings estimates in each of the past four quarters. AbbVie pulled off a four-quarter earnings surprise of 3.02%, on average.
Stay on top of upcoming earnings announcements with the
Zacks Earnings Calendar
.
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