Bristol-Myers Squibb Company
) to report in line first-quarter 2013 results before the opening
bell on Apr 25.
Factors to Consider this Quarter
The genericization of Plavix (May 17, 2012) and Avapro (Mar
2012) in the US has resulted in significant loss of revenues for
Bristol-Myers. Bristol-Myers co-developed both drugs with
). Bristol-Myers is looking to combat the generic threat hanging
over its key drugs through partnering deals and acquisitions and
introducing new products to augment its product portfolio. In Dec
2012, the US Food and Drug Administration cleared blood thinner
Eliquis. Successful commercialization of Eliquis should boost
Bristol-Myers' top line significantly since the drug offers great
commercial potential. Moreover, in Aug 2012, Bristol-Myers
acquired Amylin Pharmaceuticals, Inc. in a bid to diversify its
business to combat the generic threat and bolster its position in
the lucrative diabetes market.
The efforts of Bristol-Myers notwithstanding, first-quarter
2013 results will likely continue to be hurt by the
genericization of Plavix and Avapro. The company has delivered
mixed results over the last four quarters, missing estimates in
The Zacks Consensus Estimate for the first quarter has moved
down by two cents to 43 cents per share over the last 30
Our proven model does not conclusively show that Bristol-Myers
is likely to beat earnings estimates this quarter. This is
because a stock needs to have both a positive earnings Expected
Surprise Prediction (ESP) (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1, 2 or 3 for this to happen.
The ESP, which represents the difference between the Most
Accurate estimate and the Zacks Consensus Estimate, is 0.00%.
This is because both the Most Accurate Estimate and Zacks
Consensus Estimate currently stand at 41 cents.
Zacks Rank #3 (Hold)
: Bristol-Myers' Zacks Rank #3 lowers the predictive power of ESP
because the Zacks Rank #3 when combined with an ESP of 0.00%
indicates the possibility of in line results.
Stocks to Consider
Here are some other stocks you may want to consider as our
model shows these have the right combination of elements to post
an earnings beat this season:
Eli Lilly and Company
) has an Earnings ESP of +3.85% and holds a Zacks Rank #3
Gilead Sciences Inc.
) has an Earnings ESP of +2.08% and carries a Zacks Rank #3.
BRISTOL-MYERS (BMY): Free Stock Analysis
GILEAD SCIENCES (GILD): Free Stock Analysis
LILLY ELI & CO (LLY): Free Stock Analysis
SANOFI-AVENTIS (SNY): Free Stock Analysis
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