Should Bristol Myers Stock Be in Your Portfolio Pre-Q4 Earnings?

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]