Bristol-Myers Squibb Company
) is scheduled to report second quarter 2014 results before the
opening bell on Jul 24. Last quarter, Bristol-Myers had posted an
earnings surprise of +4.55%. Let's see how things are shaping up
for this announcement.
Factors at Play
Although pipeline development by Bristol-Myers will increase its
research and development expenses, strong performance from Sprycel,
Yervoy and Orencia will boost revenues.
However, continued generic competition faced by Sustiva will affect
sales. The company is also making additional investments for the
commercialization of Eliquis, which will add to its SG&A
expenses. We expect Bristol-Myers to provide a detailed update on
its pipeline while releasing its second quarter results.
Our proven model does not conclusively show that Bristol-Myers
Squibb is likely to beat earnings this quarter. That is because a
stock needs to have both a positive Earnings ESP (Expected Surprise
Prediction) and a Zacks Rank of #1, 2 or 3 for this to happen. That
is not the case here as you will see below.
The Earnings ESP for Bristol-Myers Squibb is -2.27% since the Most
Accurate estimate is $0.43 while the Zacks Consensus Estimate is
$0.44 per share.
Zacks #3 Rank (Hold):
Bristol-Myers Squibb's Zacks Rank #3 (Hold) has little effect on
the predictive power of ESP because the Zacks Rank #3 when combined
with a negative ESP makes surprise prediction difficult.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that they have the right combination of elements, i.e.,
a positive Zacks Earnings ESP and a Zacks Rank #1, #2 or #3.
) has an earnings ESP of +4.49% and carries a Zacks Rank #2. Endo
will report second quarter earnings on Jul 31 before market opens.
) has an Earnings ESP of +2.33% and holds a Zacks Rank #1.
Mallinckrodt will report third quarter earnings on Aug 7 before
) has an Earnings ESP of +26.83% and holds a Zacks Rank #3. Impax
will report second quarter earnings on Aug 6 before market
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