Bristol Myers Squibb (NYSE: BMY) is scheduled to report its This fall 2022 outcomes on Thursday, February 2. We count on BMY inventory to commerce sideways, with its income falling marginally beneath, however earnings above the road estimates. Though the corporate ought to profit from continued market share good points for Eliquis, Opdivo, and Reblozyl, foreign exchange headwinds and an anticipated decline in Revlimid gross sales as a result of biosimilar competitors will doubtless weigh on the general gross sales. Moreover, we discover BMY inventory to have little room for development, as mentioned beneath. Our interactive dashboard evaluation of Bristol Myers Squibb Earnings Preview has further particulars.
(1) Revenues anticipated to be barely beneath the consensus estimates
- Trefis estimates BMS’ This fall 2022 revenues to be round $11.2 billion, reflecting over a 6% y-o-y decline and barely beneath the consensus estimate of $11.3 billion.
- Foreign exchange headwinds are more likely to weigh on the corporate’s general efficiency.
- A decline in Revlimid gross sales will doubtless greater than offset gross sales development for Eliquis, Opdivo, and Reblozyl.
- Q3 2022, the corporate noticed its gross sales fall 3% y-o-y to $11.2 billion. Its In-Line merchandise gross sales had been up 5%, whereas Latest LOE Merchandise (refers to medication which have misplaced market exclusivity) gross sales had been down 28%.
- Our dashboard on Bristol Myers Squibb’s Revenues particulars the corporate’s segments.
(2) EPS more likely to be above the consensus estimates
- MS’ Q3 2022 adjusted earnings per share is anticipated to be $1.75 per Trefis evaluation, barely above the consensus estimate of $1.71. This compares with the $1.83 determine reported within the prior-year quarter.
- The corporate’s adjusted internet earnings of $4.26 billion in Q3 2022 mirrored a 2% fall from its $4.34 billion determine within the prior-year quarter, partly as a result of decrease revenues.
- For the full-year 2023, we count on the adjusted EPS to be $7.98, in comparison with the EPS of $7.51 in 2021 and an estimated $7.63 in 2022.
(3) BMY inventory appears prefer it has little room for development
- We estimate Bristol Myers Squibb’s Valuation to be round $80 per share, simply 10% above the present market value of $73.
- At its present ranges, BMY inventory is buying and selling at a P/E a number of of 9x based mostly on our EPS estimate of $7.98 for 2023, aligning with its final three-year common, implying that BMY inventory could have solely a bit of room for development.
- Nevertheless, if the corporate reviews upbeat This fall outcomes and offers a 2023 outlook higher than the road estimates, the P/E a number of will doubtless be revised upward, leading to increased ranges for BMY inventory.
Whereas BMY inventory appears pretty valued, it’s useful to see how Bristol Myers Squibb’s Peers fare on metrics that matter. You will see that different useful comparisons for corporations throughout industries at Peer Comparisons.
Moreover, the Covid-19 disaster has created many pricing discontinuities which might supply engaging buying and selling alternatives. For instance, you’ll be stunned how counter-intuitive the inventory valuation is for Mednax vs. Penske Automotive
Regardless of inflation rising and the Fed elevating rates of interest, BMY inventory has risen 14% within the final twelve months. However can it drop from right here? See how low Bristol Myers Squibb stock can go by evaluating its decline in earlier market crashes. Here’s a performance summary of all stocks in previous market crashes.
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