The Bristol Myers Squibb research and development center at Cambridge Crossing in Cambridge, Massachusetts, on Dec. 27, 2023.Bristol Myers Squibb on Thursday said it will slash $2 billion in costs by the end of 2027, expanding its ongoing cost savings effort to chart a path toward long-term growth. Bristol Myers said savings will be driven by organizational changes and efforts to streamline operations and will allow the company to invest in new science and drug brands expected to deliver growth. The pharmac ...

Bristol Myers Squibb (BMY) announced that it has obtained a positive opinion from the Committee for Medicinal Products for Human Use (“CHMP”) of the European Medicines Agency for two of its drugs.The CHMP recommended approval of Opdivo (nivolumab) plus Yervoy (ipilimumab) for the first-line treatment of adult patients with unresectable or advanced hepatocellular carcinoma (HCC).The CHMP also recommended approval of Breyanzi (lisocabtagene maraleucel; liso-cel) for relapsed or refractory follicular lymphoma. ...

Core Viewpoint - Bristol-Myers Squibb Company (BMY) is set to report its Q4 and full-year 2024 results on February 6, with sales and earnings estimates of $11.56 billion and $1.46 per share respectively [1] Financial Estimates - The earnings estimate for 2024 has increased to $0.92 from $0.91 per share over the past 60 days, although the annual earnings estimate has been negatively impacted by acquisition-related expenses [2] - BMY's earnings surprise history shows an average surprise of 15.54% over the last four quarters, with a notable 20.81% surprise in the last reported quarter [3][4] Revenue Drivers - Total quarterly revenues are expected to rise due to growth in product franchise sales, particularly from immuno-oncology drugs [6] - Key drugs contributing to revenue include Opdivo, Orencia, Yervoy, and Reblozyl, with Q4 sales estimates for Opdivo at $2.5 billion and Orencia at approximately $966 million [7][8] Product Performance - Opdivo has maintained momentum through consistent label expansions, while Reblozyl has shown strong growth in both domestic and international markets [9][10] - Eliquis sales are projected at $3 billion, driven by increased demand in the U.S. [15] Market Position and Valuation - BMY shares have increased by 29% over the past year, outperforming the industry and the S&P 500 [16][17] - The current price/earnings ratio for BMY is 8.49x forward earnings, which is lower than its historical mean and the large-cap pharma industry average [19] Strategic Initiatives - The company has made strategic acquisitions to enhance its product portfolio, which are beginning to yield positive results, although it has incurred significant debt to finance these acquisitions [22] - Recent FDA approvals for new drugs like Cobenfy for schizophrenia and Opdivo Qvantig for subcutaneous use are expected to further diversify BMY's pipeline [21][23] Investment Outlook - BMY is viewed as a solid long-term investment, with management's efforts to stabilize revenue amidst generic challenges being commendable [25] - The attractive dividend yield is highlighted as a positive factor for investors [26]

Wall Street analysts forecast that Bristol Myers Squibb (BMY) will report quarterly earnings of $1.46 per share in its upcoming release, pointing to a year-over-year decline of 14.1%. It is anticipated that revenues will amount to $11.56 billion, exhibiting an increase of 0.7% compared to the year-ago quarter.The consensus EPS estimate for the quarter has been revised 7.6% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their ...

Core Viewpoint - The article emphasizes the importance of a company's underlying business over its yield for dividend seekers, highlighting that some companies can provide both a strong business foundation and attractive yields [1]. Group 1: Bristol Myers Squibb - Bristol Myers Squibb is a leading drugmaker with a diverse portfolio, including several drugs generating over $1 billion in annual sales [3]. - The company experienced a period of slow revenue growth due to a patent cliff but rebounded with an 8% year-over-year revenue increase to $11.9 billion in the third quarter [4]. - Older products like Eliquis continue to perform well, with sales increasing by 11% year over year to $3 billion [5]. - Newer products, particularly Reblozyl, are contributing significantly to growth, with its revenue reaching $447 million, an 80% increase from the previous year [6]. - Bristol Myers Squibb is expected to manage upcoming patent cliffs effectively, with newer products and label expansions supporting continued financial strength and dividend sustainability [7]. - The stock has a forward yield of approximately 4.2%, significantly higher than the S&P 500's 1.3%, and has increased its payouts by nearly 38% over the past five years [8]. Group 2: Novartis - Novartis is another major player in the pharmaceutical industry, with 11 medicines generating over $1 billion in sales for 2024 [9]. - The company's top-selling drug, Entresto, saw a 26% year-over-year sales increase to $1.9 billion, while Cosentyx generated $1.7 billion, up 27% from the prior year [10]. - Total sales for Novartis reached $12.8 billion, reflecting a 9% increase compared to the previous year [10]. - Although Cosentyx's U.S. patent is set to expire, Novartis has a robust pipeline with 105 programs, including new medicines like Fabhalta, which is in the early stages of commercialization [11]. - Novartis has successfully increased its dividend for 27 consecutive years, with a forward yield of about 3.7% and a cash payout ratio just under 62% [12][13].

Core Insights - Medicaid funding, approximately $900 billion annually, serves around 72 million participants and is a key area for potential healthcare reforms [1] - The 340B program is under scrutiny, with proposed reforms that may benefit biopharma companies by limiting eligibility for drug discounts, allowing profit transfer from providers to biopharma [2][5] - The specifics of these reforms remain uncertain, potentially causing volatility in the healthcare sector until more details are released [3] Medicaid and 340B Program Impacts - Proposed Medicaid funding and eligibility changes are being considered as cost-saving measures by the new administration, which could negatively affect biopharma companies with significant Medicaid drug exposure [4][5] - The top three highest-spend drugs for Medicaid in 2022 were AbbVie's Humira, Gilead's Biktarvy, and Eli Lilly's Trulicity, with Medicaid and 340B spending representing approximately 15-30% of these drugs' FY22 and FY23 revenue [6] - 340B reform is expected to serve as a tailwind for biopharma, as initiatives aim to limit access to statutory discounts [7] Potential Outcomes and Variability - The impact of 340B may vary by administration method within the same indication, affecting different therapeutics differently [7] - Spending cuts to Medicaid could negatively impact volume if they reduce coverage [8]

Core Insights - Bristol Myers Squibb (BMY) is positioned to continue its earnings-beat streak, having a history of exceeding earnings estimates, particularly in the last two quarters with an average surprise of 23.51% [1][3] Earnings Performance - In the last reported quarter, Bristol Myers achieved earnings of $1.80 per share, surpassing the Zacks Consensus Estimate of $1.49 per share, resulting in a surprise of 20.81% [2] - For the previous quarter, the company was expected to report earnings of $1.64 per share but delivered $2.07 per share, yielding a surprise of 26.22% [2] Earnings Estimates and Predictions - Estimates for Bristol Myers have been trending upward, influenced by its history of earnings surprises [3] - The company currently has a positive Earnings ESP of +0.43%, indicating that analysts are optimistic about its earnings prospects [6] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a strong possibility of another earnings beat in the upcoming report [6] Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [4] - The Earnings ESP metric compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [5] Future Outlook - The next earnings report for Bristol Myers is anticipated to be released on February 6, 2025 [6]

Company Overview - Bristol Myers Squibb (BMY) is expected to report a year-over-year decline in earnings with a projected EPS of $1.46, reflecting a decrease of 14.1% compared to the previous year [3] - Revenue for the quarter is anticipated to be $11.57 billion, which represents a slight increase of 0.8% from the same quarter last year [3] Earnings Expectations - The consensus EPS estimate has been revised down by 7.02% over the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for Bristol Myers is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.43%, suggesting a likelihood of beating the consensus EPS estimate [10][11] Historical Performance - In the last reported quarter, Bristol Myers exceeded the expected EPS of $1.49 by delivering $1.80, achieving a surprise of +20.81% [12] - The company has successfully beaten consensus EPS estimates in the last four quarters [13] Industry Context - In the Zacks Medical - Biomedical and Genetics industry, Qiagen (QGEN) is also expected to report earnings of $0.62 per share, reflecting a year-over-year increase of 12.7% [17] - Qiagen's revenue is projected to be $520.73 million, up 2.3% from the previous year, with an Earnings ESP of 2.76% indicating a likely earnings beat [18]

Group 1 - The article identifies 10 undervalued dividend growth stocks for further research and potential investment, emphasizing their quality scores as a basis for selection [1] - The author recommends investing in dividend growth stocks and writing options to enhance dividend income, highlighting a portfolio named DivGro that focuses on such stocks [1] - The article is part of a monthly series aimed at providing insights into dividend growth investing, stock selection, and passive income generation [1] Group 2 - The author has a beneficial long position in the shares of HSY, HRL, and VZ, indicating a personal investment interest in these stocks [2] - The article expresses the author's opinions without any compensation from companies mentioned, ensuring an unbiased perspective [2] - There is a disclaimer regarding past performance not guaranteeing future results, emphasizing the independent nature of the analysis [3]

Core Viewpoint - Many stocks, including those in the S&P 500, offer low dividend yields, averaging just 1.3%, making it challenging for income investors to generate significant returns from dividends [1] Group 1: Investment Opportunities - Bristol Myers Squibb is highlighted as a top healthcare investment with a focus on drug development, recently receiving FDA approval for Cobenfy, which could generate $7.5 billion at peak revenue, and expanding the use of Breyanzi, potentially generating $2 billion [4][5] - Target is identified as a Dividend King with over 50 consecutive years of dividend increases, currently yielding 2.9%, despite a 34% decline in share price over the past three years [6][8] - Suncor Energy, a major player in the oil and gas industry, has seen a nearly 40% increase in value over the past three years and generated CA$54.8 billion ($38.08 billion) in revenue, with a forward P/E of 14 and a dividend yield of 4.1% [9][10][11] Group 2: Financial Performance - Bristol Myers Squibb is trading at less than 9 times projected earnings for the next year, indicating potential value for investors [5] - Target has maintained flat revenue over the past three quarters but has grown earnings by over 8%, suggesting resilience despite economic headwinds [7] - Suncor's operating profit over the last 12 months was CA$9.6 billion ($6.67 billion), reflecting strong financial performance and a disciplined capital program aimed at increasing production and lowering costs [10][11]