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Bristol-Myers (BMY) to Report Q2 Earnings: What's in Store?

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Bristol-Myers Squibb Company (BMY - Free Report) is scheduled to report second-quarter 2023 results on Jul 27, before market open.

The company’s shares have lost 10% in the past year, in line with the industry's decline.

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Bristol-Myers beat earnings estimates in each of the last four quarters, the average surprise being 6.63%. In the last reported quarter, the company beat earnings by 3.54%.

Factors at Play

Total revenues in the second quarter are likely to have been boosted by growth in in-line product revenues. The blood thinner drug Eliquis was one of the top revenue generators in the last reported quarter and posted revenue growth of 7% year over year on the back of strong demand in the United States. The solid performance of the drug in the United States is likely to have continued in the to-be-reported quarter, but pricing pressure and generic competition in Canada and the U.K. might have impacted sales. The Zacks Consensus Estimate for sales of Eliquis stands at $3.4 billion and our estimate is pinned at $3.3 million.

Growth in sales of the key immuno-oncology drug Opdivo on consistent label expansions for newer metastatic and adjuvant indications is likely to have boosted the top line in the second quarter as well. Demand in the United States is primarily driven by demand for first-line lung, upper gastrointestinal and adjuvant bladder cancer indications. The Zacks Consensus Estimate for sales of the drug is $2.3 billion while our estimate is pinned at $2.4 billion.

Pomalyst is likely to have posted a decent performance in the second quarter, driven by demand for triplet-based regimens in earlier lines, extending the duration of treatment for patients.  The Zacks Consensus Estimate for sales of the drug stands at $934 million and our estimate is pinned at $959.5 million.

Arthritis drug Orencia declined in the previous quarter and the second quarter is likely to have witnessed the same trend.

Sales of the melanoma drug Yervoy have likely been stable in the second quarter. The Zacks Consensus Estimate and our estimate for Yervoy sales are pegged at $547 million and $551.5 million, respectively.

Among the new products, Reblozyl posted 32% growth in the last reported quarter and its demand is likely to have been higher in the second quarter as the company secures reimbursement in additional countries. Abecma and Breyanzi are also likely to have seen increased uptake and sequential growth.

Opdualag (first-line melanoma) has most likely registered a sequential increase in the second quarter on increased market share and approval in Europe. Zeposia sales are likely to have increased as well, driven by demand in multiple sclerosis and an expanding contribution from ulcerative colitis. International sales have increased primarily due to demand for multiple sclerosis and securing reimbursement in additional countries.

However, the decline in Revlimid’s revenues from generic erosion across several countries has likely offset the increase in sales.  

Marketing, selling and administrative expenses are likely to have increased in the second quarter due to new product launches.

Recent Key Developments

The European Commission approved deucravacitinib to treat adults with moderate-to-severe plaque psoriasis who are candidates for systemic therapy or phototherapy under the brand name Sotyktu.

What Our Model Predicts

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.

Earnings ESP: Earnings ESP for BMY is -0.46% as the Zacks Consensus Estimate currently stands at $2 per share and the Most Accurate Estimate is currently pegged at $1.99 per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Stocks to Consider

Here are some stocks you may want to consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter.

GSK plc (GSK - Free Report) has an Earnings ESP of 0.59% and a Zacks Rank #2.  You can see the complete list of today’s Zacks #1 Rank stocks here.

GSK topped earnings estimates in all the past four quarters, with an earnings surprise of 12.48%, on average.

Novo Nordisk (NVO - Free Report) has an Earnings ESP of +4.63% and a Zacks Rank #3.

NVO topped earnings estimates in three of the last four quarters and missed in the remaining one, with a four-quarter earnings surprise of 0.35%, on average.

AstraZeneca (AZN - Free Report) has an Earnings ESP of +1.88% and a Zacks Rank #3.

AstraZeneca topped earnings estimates in all the last four quarters and has a four-quarter earnings surprise of 8.11%, on average.

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

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