Oct. 26, 2021
Bristol-Myers Squibb Expected to Post Higher 3Q Sales -- Earnings Preview
By Matt Grossman
Bristol-Myers Squibb Co. is set to report its third-quarter earnings on Wednesday morning before trading begins. Here's what to expect from the New York City-based pharmaceutical company.
EARNINGS: Analysts polled by FactSet are forecasting the company will report adjusted earnings of $1.92 a share. In last year's third quarter, earnings were 82 cents a share, or $1.63 on an adjusted basis.
REVENUE: Analysts have forecast sales of $11.61 billion, which would be growth from $10.54 billion a year earlier.
WHAT TO WATCH
-Selloff: Shares have fallen about 15% since a high in mid-August. That trend largely reflects investors' concerns about the company's product pipeline and its loss of exclusivity on drugs it already sells, J.P. Morgan analysts write. Those factors are now likely priced in. On the other hand, J.P. Morgan adds, it's not immediately clear what near-term catalysts could boost investors' confidence again. Next year may bring more impactful events such as the Food and Drug Administration's responses to pipeline drugs.
-Policy focus: Investors may also have concerns around Bristol's exposure to potential changes in federal healthcare policy, given that, considering Bristol's work on cancer drugs, any changes to the drug-pricing regime may hit the company disproportionately. Analysts will likely be eager to quiz Bristol executives about how the policy debate could affect the company's future results, Bernstein analysts note.
Write to Matt Grossman at matt.grossman@wsj.com
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