Following the release of first quarter 2012 results on April 26,
2012, only a handful of analysts covering
Bristol-Myers Squibb Company
) have revised their earnings estimates for 2012. We believe that
the minimal estimate revisions reflect the lack of fresh news
regarding new product launches/pipeline of Bristol-Myers during the
First Quarter 2012 Recap
Bristol-Myers' first quarter 2012 earnings (excluding special
items) of $0.64 per share beat the Zacks Consensus Estimate of
$0.61. First quarter earnings increased 10% from the year-ago
period. Strong revenues aided earnings in the reported quarter.
Net sales in the reported quarter climbed 5% to $5.25 billion.
Revenues were just shy of the Zacks Consensus Estimate of $5.26
billion, mainly due to lower sales of Plavix and Avapro/Avalide. US
net sales in the quarter climbed 6% to $3.5 billion. Sales in
international markets increased 2% to $1.8 billion.
(Read our detailed earnings report at:
Earnings Beat at Bristol-Myers
Agreement of Analysts
Following the release of the first quarter 2012 results, only 4
of the 14 analysts following the stock have revised their earnings
estimates, 2 in either direction. We believe that most analysts
left their estimates unchanged after the first quarter results,
which was bereft of any major surprises/fresh news, since the
company did not change its earlier guidance for 2012.
We also believe that the major challenge for Bristol-Myers in
2012 that will arise following the loss of US marketing exclusivity
of blockbuster blood thinner Plavix on May 17 has already been
accounted for by the analysts. Bristol-Myers has co-developed
Fiscal 2013 estimates have been revised by 5 analysts over the
last 7 days. While 3 analysts have trimmed estimates, 2 have moved
in the opposite direction.
Magnitude - Consensus Estimate Trend
With majority of the analysts not changing estimates for 2012,
the Zacks Consensus Estimate has gone down by just a cent to $1.95
per share over the last 7 days. Meanwhile, the Zacks Consensus
Estimate for 2013 has gone down by a cent to $1.94 per share over
the last 7 days.
Neutral on Bristol-Myers
We currently have a Neutral recommendation on Bristol-Myers. The
stock carries a Zacks #3 Rank (Hold rating) in the short run. Even
though we are concerned about the high generic risk on many of
Bristol-Myers' leading franchises, we believe that the company's
diversified business model coupled with its strong financial
position will help in tough situations.
Bristol-Myers is looking to combat the generic threat through
partnering deals and acquisitions. Apart from acquisitions and
partnership deals, Bristol-Myers is looking to introduce new
products to augment its product portfolio to combat generic threat.
Bristol-Myers has met with a fair amount of success towards
achieving this objective. Many new products were launched/ approved
A key action date is coming up at Bristol-Myers in June when the
US Food and Drug Administration (FDA) is scheduled to decide on
blood thinner Eliquis, co-developed with
), for preventing stroke in patients suffering from atrial
fibrillation. Positive news from the FDA will help boost the
About Earnings Estimate Scorecard
As a PhD from MIT, Len Zacks proved over 30 years ago that
earnings estimate revisions are the most powerful force impacting
stock prices. He turned this ground breaking discovery into two
of the most celebrating stock rating systems in use today. The
Zacks Rank for stock trading in a 1 to 3 month time horizon and
the Zacks Recommendation for long-term investing (6+ months).
These "Earnings Estimate Scorecard" articles help analyze the
important aspects of estimate revisions for each stock after
their quarterly earnings announcements. Learn more about earnings
estimates and our proven stock ratings at
BRISTOL-MYERS (BMY): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
SANOFI-AVENTIS (SNY): Free Stock Analysis
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