Should Bristol Myers Stock Be in Your Portfolio Pre-Q4 Earnings?

Biotech giant Bristol-Myers Squibb Company BMY is scheduled to report its fourth-quarter and full-year 2024 results on Feb. 6, before market open.The Zacks Consensus Estimate for sales and earnings for the fourth quarter is pegged at $11.56 billion and $1.46 per share, respectively.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Earnings estimate for 2024 has increased to 92 cents from 91 cents per share over the past 60 days. It’s worth noting that the annual earnings estimate has taken a massive hit due to acquisition-related expenses in 2024.Image Source: Zacks Investment ResearchBMY’s Earnings Surprise HistoryBMY has an excellent track record. Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 15.54%. In the previously reported quarter, the company’s earnings beat estimates by 20.81%.Image Source: Zacks Investment ResearchWhat Our Model Predicts for BMYPer our proven model, 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.Earnings ESP for BMY is +0.43%. The company currently carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.Factors Influencing BMY’s Q4 ResultsTotal quarterly revenues are likely to have increased on the back of growth in product franchise sales. Growth portfolio primarily comprises sales from immuno-oncology drugs like Opdivo, Orencia, Yervoy, Reblozyl, Opdualag, Abecma, Zeposia, Breyanzi, Camzyos, Sotyku, Krazati and others.Consistent label expansions in newer metastatic and adjuvant indications have likely maintained momentum for immuno-oncology drug Opdivo in the fourth quarter. Management expects full-year 2024 sales to grow in the mid-single-digit range. Both the Zacks Consensus Estimate and our model estimate for Opdivo sales in the fourth quarter are pegged at $2.5 billion.The Zacks Consensus Estimate and our model estimate for Orencia sales are pegged at $966 million and $945 million, respectively.The Zacks Consensus Estimate and our model estimate for Yervoy sales are pegged at $632 million and $590 million, respectively.Reblozyl posted solid growth in both the United States and international markets in the last reported quarter. Sales in the United States are being driven by strong demand due to a broad label in the country's first-line setting.We note that the FDA had earlier approved Reblozyl (luspatercept-aamt) as a first-line treatment for anemia in adults with lower-risk myelodysplastic syndromes who may require transfusions. International sales growth, driven by reimbursement in Europe and Japan, has also likely boosted sales of this drug in the fourth quarter.The Zacks Consensus Estimate and our model estimate for Reblozyl sales are pegged at $473 million and $461.4 million, respectively.Strong growth in Opdualag (first-line melanoma) sales in the United States and encouraging uptake in newly launched markets such as the UK, Brazil and Australia are likely to have fueled top-line growth. The Zacks Consensus Estimate and our model estimate for Opdualag sales are pegged at $252 million and $253 million, respectively.   Breyanzi sales might have benefited from growth in demand in new indications and expanded manufacturing capacity. The FDA had earlier granted accelerated approval to Breyanzi for the treatment of adult patients with relapsed or refractory follicular lymphoma who have received two or more prior lines of systemic therapy.Camzyos sales have likely seen strong growth, driven by increased demand in the United States on the back of new patient starts and higher demand in newly launched markets outside the country. Zeposia’s sales, too, are likely to have increased, driven by accelerated demand in multiple sclerosis indications.Abecma's uptake has not been that impressive. However, solid demand boosted sales in both the US and international markets. This trend is likely to have continued in the fourth quarter. BMY has a collaboration agreement with 2seventy bio, Inc. TSVT for Abecma.In the legacy portfolio, the decline in Revlimid’s revenues from generic erosion across several countries has likely pulled down the top line. Moreover, the loss of exclusivity for Abraxane (United States) and Pomalyst (Europe) has likely reduced legacy portfolio sales.The Zacks Consensus Estimate for Pomalyst’s fourth-quarter sales is pegged at $791 million and our model estimate for the same is pinned at $808 million.    Eliquis sales are being driven by higher demand in the United States. Both the Zacks Consensus Estimate and our model estimate for Eliquis’ sales are pegged at $3 billion.Bristol-Myers collaborated with Pfizer PFE for Eliquis in 2007. Profits and losses are shared equally worldwide, except in certain countries where Pfizer commercializes Eliquis and pays BMY a sales-based fee.Operating expenses are likely to have increased slightly due to investment in new product launches and pipeline development.BMY’s Price Performance and ValuationShares of BMY have risen 29% in the past year against the industry’s decline of 8.7%. The stock has also outperformed the sector and the S&P 500 in this timeframe. From a price perspective, BMY is currently tilting toward the high end of the 52-week range.Bristol Myers Outperforms Industry &Sector, Underperforms S&P 500Image Source: Zacks Investment ResearchGoing by the price/earnings ratio, BMY’s shares currently trade at 8.49x forward earnings, lower than its mean of 8.61x and 16.42x for the large-cap pharma industry.Image Source: Zacks Investment ResearchInvestment ThesisThe uptake of new drugs has been impressive for BMY, giving anxious investors a ray of hope. BMY is banking on newer drugs like Opdualag, Reblozyl and Breyanzi to stabilize its revenue base. Approval of additional new drugs and label expansion of top drugs should further diversify its pipeline.BMY recently won FDA approval for xanomeline and trospium chloride (formerly KarXT), an oral medication for the treatment of schizophrenia, in adults. The drug was approved under the brand name Cobenfy.Cobenfy represents the first new pharmacological approach to treating schizophrenia in decades.BMY made strategic acquisitions to augment its product portfolio, and these seem to be paying off now. However, there is a long way to go. On the other hand, the company has taken on colossal debt to finance these acquisitions.The FDA recently granted approval to Opdivo Qvantig (nivolumab and hyaluronidase-nvhy) injection for subcutaneous use, a combination product of nivolumab co-formulated with recombinant human hyaluronidase (rHuPH20), in most previously approved adult, solid tumor Opdivo indications as monotherapy, monotherapy maintenance following completion of Opdivo plus Yervoy combination therapy, or in combination with chemotherapy or cabozantinib.Stay Invested in BMY StockLarge biotech companies are generally considered safe havens for investors interested in this sector. Irrespective of how the company fares in the fourth quarter, BMY makes for a good long-term investment. Management’s efforts to revive the top line in the face of generic challenges for key drugs are commendable.We recommend investors to wait for better entry levels at current levels. For investors already owning the stock, staying invested would be a prudent move. The company’s attractive dividend yield is a strong positive for investors.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bristol Myers Squibb Company (BMY): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report 2seventy bio, Inc. (TSVT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks