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Bristol-Myers (BMY) to Post Q2 Earnings: What is in the Cards?

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Bristol-Myers Squibb Company (BMY - Free Report) is scheduled to report second-quarter 2022 results on Jul 27, before market open.

The company’s shares have gained 17% in the year so far against the industry's decline of 21.6%.

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Bristol-Myers beat earnings estimates in all of the last four quarters, the average surprise being 2.36%. In the last reported quarter, the company beat earnings by 2.08%.

Factors at Play

Bristol-Myers posted 11% growth in Total In-line Product Revenues in the previous quarter, and demand is likely to have improved in the second quarter. Blood thinner drug, Eliquis, was one of the top revenue generators in the last reported quarter and posted revenue growth of 11% year over year.  The solid performance of the drug 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 $3.2 billion.

Sales of key immuno-oncology drug, Opdivo grew 12% in the prior quarter, and similar or higher levels of growth is expected in the to-be-reported quarter on consistent label expansions.  In particular, higher demand across multiple indications, including the Opdivo+Yervoy-based combinations for non-small cell lung cancer (NSCLC), might have fueled sales. 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 $2.1 billion.

The FDA has approved Opdivo combinations for yet another indication. The regulatory body approved the drug (injection for intravenous use) in combination with fluoropyrimidine- and platinum-containing chemotherapy as a first-line treatment for adult patients with unresectable advanced or metastatic esophageal squamous cell carcinoma (ESCC) regardless of PD-L1 status. Concurrently, Opdivo, in combination with Yervoy (ipilimumab), was also approved for the same indication by the FDA.

Pomalyst posted a decent performance in the first quarter with sales growth of 7%, and the trend is likely to have prevailed in the second quarter.

Arthritis drug Orencia posted 4% rise in the previous quarter, and the second quarter likely witnessed similar levels of growth.

Melanoma drug, Yervoy, generated 13% growth in the previous quarter. The second quarter is likely to have experienced increased contribution on label expansions. The Zacks Consensus Estimate for sales of the drug stands at $581 million.

Among the new products, Reblozyl posted 39% growth in the previous quarter, and demand is likely to have been higher in the second quarter. Abecma and Breyanzi might also have seen increased uptake.

However, Revlimid revenues declined 5% in the previous quarter on generic erosion across several EU countries and Canada, and foreign exchange. The decline is likely to have accelerated in the second quarter.

Abraxane revenues declined 32% on lower demand, primarily due to manufacturing delays. Revenues from this drug might have decreased in the second quarter too.

Operating expenses are likely to have increased in the second quarter due to costs associated with the broader portfolio.

Key Recent Developments

Bristol Myers will acquire clinical-stage precision oncology company Turning Point Therapeutics for $76.00 per share, which equates to a total transaction value of $4.1 billion. The offer price of $76 represents a 122% premium to Turning Point’s closing price of $34.16 on Jun 2. The acquisition is expected to close in the ongoing quarter.  The deal will add Turning Point’s lead asset, repotrectinib, a next-generation, potential best-in-class tyrosine kinase inhibitor (TKI) targeting the ROS1 and NTRK oncogenic drivers of non-small cell lung cancer (NSCLC) and other advanced solid tumors.

Earnings Whispers

Our proven model does not predict an earnings beat for Bristol Myers in this reporting cycle. 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: Bristol Myers has an Earnings ESP of -2.10%.

Zacks Rank: Bristol Myers currently carries a Zacks Rank #3.

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.

Alkermes (ALKS - Free Report) has an Earnings ESP of +300.00% and a Zacks Rank #1, currently.  You can see the complete list of today’s Zacks #1 Rank stocks here.
ALKS has an excellent track record, with the company beating estimates in all of the last four trailing quarters.

Seagen (SGEN - Free Report) has an Earnings ESP of +3.31% and a Zacks Rank #1, currently.  Shares of SGEN have gained 11% in the year so far.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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