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Factors Setting the Tone for Bristol-Myers (BMY) Q1 Earnings
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Bristol-Myers Squibb Company (BMY - Free Report) is scheduled to report first-quarter 2020 results on May 7, before market open.
The company’s shares have lost 6.1% in the year so far compared with the industry’s decline of 3.2%.
Bristol-Myers has an excellent track record. The company has delivered a positive surprise of 4.12%, on average, in the trailing four quarters. In the last reported quarter, the company delivered a negative earnings surprise of 6.15%.
Let’s see how things are shaping up for the upcoming announcement.
Factors Driving Growth
Bristol-Myers’ blood thinner drug, Eliquis, witnessed strong growth in the last reported quarter and was the top revenue generator in the previous quarter with sales of $2.0 billion, up 19% year over year. This trend has most likely continued in the to-be-reported quarter, propelled by market share increases.
Sales of Bristol-Myers’ key immuno-oncology drug, Opdivo, were down in the fourth quarter. It remains to be seen how the drug fared in the first quarter amid stiff competition from Merck’s (MRK - Free Report) Keytruda. The drug, which is approved for multiple indications, generated sales of $1.8 billion in the last reported quarter, down 2% year over year. Nevertheless, several label expansions in the previous quarters are likely to have driven the drug’s sales in the to-be-reported quarter. In March, Opdivo plus Yervoy was approved by the FDA to treat hepatocellular carcinoma (HCC) in patients who have been previously treated with sorafenib.
Arthritis drug, Orencia, raked in sales of $792 million in the last reported quarter, up 8% year over year. The drug has most likely boosted the top line in the first quarter as well.
In November 2019, Bristol-Myers acquired Celgene Corporation following the receipt of regulatory approvals from all government authorities, as required by the merger agreement.
The acquisition added oncology drug, Revlimid, to Bristol-Myers portfolio. Revlimid sales came in at $1.3 billion in the fourth quarter. Similar contributions are expected in the first quarter as well. Moreover, the European Commission approved a new indication for Revlimid in combination with Rituxan for the treatment of adult patients with previously treated follicular lymphoma. The recent label expansion of the drug is likely to have further boosted sales.
Pomalyst too has likely boosted the top line in the quarter under review. In November 2019, the FDA approved Celgene’s Reblozyl for the treatment of anemia in adult patients with beta thalassemia, who require regular red blood cell (RBC) transfusions. The top line is likely to have got a boost from the incremental contribution of Reblozyl, since this is the first full quarter post the approval.
The Zacks Consensus Estimate for first-quarter revenues are $9.9 billion.
Apart from the top and bottom-line numbers, investors will focus on updates on the label expansion of drugs and other pipeline updates. The FDA has accepted the company’s Biologics License Application (BLA) for lisocabtagene Maraleucel (liso-cel) for the treatment of adult patients with relapsed or refractory large B-Cell lymphoma. The FDA also approved Zeposia for the treatment of adults with relapsing forms of multiple sclerosis (RMS) on Mar 25.
Key Anticipated Updates
Investors will be awaiting updates on the outlook as the coronavirus pandemic has resulted in supply-chain disruptions and affected demand for other drugs
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Bristol-Myers this season. 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. Unfortunately, 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 -1.41%, as the Zacks Consensus Estimate stands at $1.48 and the Most Accurate Estimate at $1.46.
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.
Sage Therapeutics (SAGE - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank #2.
Alexion Pharmaceuticals has an Earnings ESP of +1.08% and a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Shutterstock
Factors Setting the Tone for Bristol-Myers (BMY) Q1 Earnings
Bristol-Myers Squibb Company (BMY - Free Report) is scheduled to report first-quarter 2020 results on May 7, before market open.
The company’s shares have lost 6.1% in the year so far compared with the industry’s decline of 3.2%.
Bristol-Myers has an excellent track record. The company has delivered a positive surprise of 4.12%, on average, in the trailing four quarters. In the last reported quarter, the company delivered a negative earnings surprise of 6.15%.
Let’s see how things are shaping up for the upcoming announcement.
Factors Driving Growth
Bristol-Myers’ blood thinner drug, Eliquis, witnessed strong growth in the last reported quarter and was the top revenue generator in the previous quarter with sales of $2.0 billion, up 19% year over year. This trend has most likely continued in the to-be-reported quarter, propelled by market share increases.
Sales of Bristol-Myers’ key immuno-oncology drug, Opdivo, were down in the fourth quarter. It remains to be seen how the drug fared in the first quarter amid stiff competition from Merck’s (MRK - Free Report) Keytruda. The drug, which is approved for multiple indications, generated sales of $1.8 billion in the last reported quarter, down 2% year over year. Nevertheless, several label expansions in the previous quarters are likely to have driven the drug’s sales in the to-be-reported quarter. In March, Opdivo plus Yervoy was approved by the FDA to treat hepatocellular carcinoma (HCC) in patients who have been previously treated with sorafenib.
Arthritis drug, Orencia, raked in sales of $792 million in the last reported quarter, up 8% year over year. The drug has most likely boosted the top line in the first quarter as well.
In November 2019, Bristol-Myers acquired Celgene Corporation following the receipt of regulatory approvals from all government authorities, as required by the merger agreement.
The acquisition added oncology drug, Revlimid, to Bristol-Myers portfolio. Revlimid sales came in at $1.3 billion in the fourth quarter. Similar contributions are expected in the first quarter as well. Moreover, the European Commission approved a new indication for Revlimid in combination with Rituxan for the treatment of adult patients with previously treated follicular lymphoma. The recent label expansion of the drug is likely to have further boosted sales.
Pomalyst too has likely boosted the top line in the quarter under review. In November 2019, the FDA approved Celgene’s Reblozyl for the treatment of anemia in adult patients with beta thalassemia, who require regular red blood cell (RBC) transfusions. The top line is likely to have got a boost from the incremental contribution of Reblozyl, since this is the first full quarter post the approval.
The Zacks Consensus Estimate for first-quarter revenues are $9.9 billion.
Apart from the top and bottom-line numbers, investors will focus on updates on the label expansion of drugs and other pipeline updates. The FDA has accepted the company’s Biologics License Application (BLA) for lisocabtagene Maraleucel (liso-cel) for the treatment of adult patients with relapsed or refractory large B-Cell lymphoma. The FDA also approved Zeposia for the treatment of adults with relapsing forms of multiple sclerosis (RMS) on Mar 25.
Key Anticipated Updates
Investors will be awaiting updates on the outlook as the coronavirus pandemic has resulted in supply-chain disruptions and affected demand for other drugs
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Bristol-Myers this season. 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. Unfortunately, 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 -1.41%, as the Zacks Consensus Estimate stands at $1.48 and the Most Accurate Estimate at $1.46.
Zacks Rank: The company currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Bristol-Myers Squibb Company Price, Consensus and EPS Surprise
Bristol-Myers Squibb Company price-consensus-eps-surprise-chart | 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.
Sage Therapeutics (SAGE - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank #2.
Alexion Pharmaceuticals has an Earnings ESP of +1.08% and a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>