What to Look For in Bristol-Myers Earnings

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Bristol-Myers Squibb Co. (NYSE: BMY) is scheduled to release third-quarter financial results before markets open on Thursday. The consensus estimates from Thomson Reuters are calling for $0.65 in earnings per share (EPS) and $4.79 billion in revenue. The same period from last year had $0.39 in EPS and $4.07 billion in revenue.

During this quarter, the company updated results at the European Society for Medical Oncology (ESMO) from two pivotal Phase 3 studies, CheckMate -057 and CheckMate -017, which showed more than one-third of previously treated metastatic non-small cell lung cancer (NSCLC) patients in both trials experienced ongoing responses with Opdivo, compared to no ongoing responses in the docetaxel arm.

There were no new safety signals identified for Opdivo in the pooled safety analysis from both studies. No new treatment-related deaths occurred between one and two years’ minimum follow-up despite the longer treatment exposure, and new events were observed in 11/418 patients with an additional one year of follow up.

The median duration of response (DOR) with Opdivo versus docetaxel in CheckMate -057 was 17.2 months and 5.6 months, respectively, and in CheckMate -017 it was 25.2 months and 8.4 months, respectively.

A few analysts weighed in on Bristol-Myers ahead of the report:

  • BMO Capital Markets has a Market Perform rating with a $56 price target.
  • Credit Suisse reiterated a Hold rating with a $58 price target.
  • Goldman Sachs has a Buy rating with a $75 price target.
  • Barclays reiterated an Equal Weight rating.
  • SunTrust Banks reiterated a Hold rating.
  • Leerink reiterated an Outperform rating with a $69 price target.
  • Citigroup has a Buy rating with a $70 price target.
  • Jefferies reiterated a Hold rating.
  • Morgan Stanley reiterated a Hold rating.

So far in 2016, Bristol-Myers has vastly underperformed the broad markets with the stock down 28% in this time. Over the past 52-weeks the stock is down 26%.

Shares of Bristol-Myers were last trading at $49.22, with a consensus analyst price target of $64.33 and a 52-week trading range of $49.03 to $77.12.

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