Industry Overview - The second-quarter 2025 reporting cycle for the Medical sector is commencing, with most firms expected to release earnings results in the next two weeks, primarily consisting of pharma/biotech and medical device companies [1] - The earnings season for the drug and biotech sector began in mid-July, highlighted by Johnson & Johnson's strong performance, which exceeded earnings and sales estimates, leading to raised revenue and earnings expectations for the year [1] Company Performance - Novartis surpassed second-quarter earnings and revenue estimates, driven by a year-over-year increase in sales of key drugs, prompting an upward revision of its annual guidance for core operating income [2] - Roche experienced solid growth in the first half of 2025, with high demand for key drugs offsetting declines in legacy drug sales [2] - As of July 23, 15% of companies in the Medical sector, representing 27.2% of the sector's market capitalization, reported quarterly earnings, with 88.9% outperforming earnings estimates and 100% beating revenue estimates [3] - Overall, second-quarter earnings for the Medical sector are projected to increase by 0.9%, while sales are expected to rise by 7.9% compared to the previous year [3] Upcoming Earnings Reports - Merck, AstraZeneca, Bristol Myers, AbbVie, and Moderna are scheduled to release their quarterly results this week [4] - Merck has a strong earnings track record, beating estimates in the last four quarters with an average surprise of 3.82% [5] - AstraZeneca has a mixed earnings history, beating estimates in three of the last four quarters, with an average surprise of 4.24% [8] - Bristol Myers has consistently beaten earnings estimates, with an average surprise of 20.16% over the last four quarters [11] - AbbVie has also maintained a strong track record, beating estimates in the last four quarters with an average surprise of 2.55% [13] - Moderna has an excellent earnings history, with an average surprise of 31.60% in the last four quarters [15] Sales Drivers - Merck's growth in the second quarter is likely attributed to increased sales of its cancer drug Keytruda, driven by additional indications and patient demand [7] - AstraZeneca's sales are expected to be bolstered by strong demand for its cancer and diabetes medications [10] - Bristol Myers' revenue may be impacted by declines in legacy drug sales, but growth products are expected to partially offset this decline [12] - AbbVie's revenue is anticipated to be driven by strong sales of key drugs and contributions from newer products [14] - Moderna's revenues are expected to be influenced by sales of its COVID-19 vaccine, Spikevax, while the focus is shifting to updates on its broader pipeline [16]

Core Viewpoint - Bristol-Myers Squibb Company (BMY) is set to report its second-quarter 2025 results on July 31, with sales and earnings estimates at $11.38 billion and $1.18 per share, respectively. However, earnings estimates for 2025 and 2026 have seen a decline over the past month [1][5]. Financial Estimates - The current earnings estimate for Q2 2025 is $1.18, down from $1.55 30 days ago, reflecting a decrease of 29.34%. The earnings estimates for 2025 and 2026 have also decreased to $6.37 and $6.03, respectively [2][5]. - BMY has a strong earnings surprise history, beating estimates in the last four quarters with an average surprise of 20.16% [2]. Factors Influencing Q2 Results - Total quarterly revenues are expected to be negatively impacted by declining sales from the legacy portfolio, which includes drugs like Eliquis, Revlimid, and Pomalyst, primarily due to generic competition [4][5]. - Sales for Pomalyst are estimated at $727 million, while Eliquis is projected to generate $3.5 billion in sales [6][7]. Growth Portfolio Performance - The growth portfolio, which includes drugs like Opdivo, Reblozyl, and Camzyos, is expected to partially offset the decline in legacy drug sales. Opdivo sales are estimated at $2.4 billion, while Reblozyl is projected at $546 million [8][10][11]. - New drug Cobenfy for schizophrenia has shown promising sales growth, indicating a positive start for the newly launched product [12][18]. Strategic Initiatives - BMY has announced cost-cutting plans aiming to save $1.5 billion by 2025 and an additional $2 billion annually by 2027, which are expected to improve profitability [5][14]. - The company has entered a strategic collaboration with BioNTech for the co-development of a bispecific antibody, BNT327, which targets solid tumors [19][22]. Stock Performance and Valuation - BMY shares have declined by 14.4% year-to-date, underperforming the industry and the S&P 500 [16]. - The stock currently trades at a price/earnings ratio of 7.84x forward earnings, lower than its historical mean and the large-cap pharma industry average [20].

Core Insights - Bristol Myers (BMY) has shown a strong performance recently, gaining 6.3% in a month, outperforming the industry (3.9% gain) and the S&P 500 [1][7] - The company is focusing on newer drugs to stabilize revenue as legacy drugs face generic competition [4][10] - Recent pipeline setbacks have raised investor concerns, but there is optimism around new drug approvals and label expansions [7][20] Financial Performance - BMY's stock performance has improved after being under pressure, with a raised annual guidance following first-quarter results [3] - The company is trading at a price/earnings ratio of 7.93x forward earnings, lower than the large-cap pharma industry's average of 15.26x [16] - The Zacks Consensus Estimate for 2025 EPS has decreased from $6.89 to $6.37 over the past 60 days [18] Drug Pipeline and Growth Drivers - New drugs like Opdualag, Reblozyl, and Breyanzi are crucial for offsetting the impact of legacy drug patent expirations [4][7] - Opdivo has shown solid revenue growth driven by volume, with recent label expansions expected to boost sales further [5] - The FDA has accepted a supplemental new drug application for Sotyktu, with a decision expected in March 2026 [6] Challenges and Setbacks - Generic competition is impacting sales of key drugs like Revlimid and Eliquis, with Eliquis sales down 4% in Q1 due to Medicare Part D redesign [10][11] - Recent phase III study results for Reblozyl and Camzyos did not meet primary endpoints, raising concerns among investors [12][15] - The company plans to engage with regulatory bodies regarding marketing applications despite these setbacks [14] Strategic Collaborations - A recent collaboration with BioNTech for the co-development of bispecific antibody BNT327 is expected to enhance BMY's pipeline in cancer treatment [9]

Core Viewpoint - Bristol-Myers Squibb is preparing to announce its Q2 2025 earnings, with expectations of adjusted earnings of $1.585 per share and sales of $11.31 billion, despite slight downward revisions in revenue and earnings estimates for 2025 [1][2]. Financial Performance - The company anticipates a low-single-digit percentage increase in total revenue for the later 2020s, primarily due to updated assumptions for its cancer drug Yervoy [2][4]. - Bank of America Securities has revised the company's earnings model, showing a decline of more than 1% in total revenue and EPS for Q2, with similar trends for 2025 [3][4]. Product Performance and Market Dynamics - Key products such as Pomalyst, Revlimid, Camzyos, and Orencia are expected to face significant headwinds due to U.S. drug pricing reforms [5]. - The earnings call will focus on the commercial performance of products like Cobenfy, Camzyos, Reblozyl, and Breyanzi, which are crucial for immediate revenue streams [7][8]. Industry Challenges - The evolving landscape of U.S. drug pricing policies, including the 'most favored nation' rule and potential pharma-specific tariffs, poses systemic pressures on the pharmaceutical industry, affecting Bristol-Myers Squibb [6]. - The company is expected to face several challenging years ahead, with anticipated earnings declines driven by generic competition [10]. Valuation Insights - Bristol-Myers Squibb is considered one of the cheaper companies in large-cap biopharma, with a price-to-earnings ratio of 7 to 8 times expected 2025 earnings, comparable to peers like Pfizer, GSK, Biogen, and Merck [9].

Core Viewpoint - Bristol Myers (BMY) has faced a challenging first half of 2025, with shares down 16.3% year to date, underperforming both the industry and the S&P 500, primarily due to pipeline setbacks and generic competition despite some positive regulatory updates [1][3]. Financial Performance - The first-quarter performance exceeded expectations, leading to an increase in annual revenue guidance; however, the stock has declined since then, reflecting broader market concerns and skepticism about growth prospects [4]. - The Zacks Consensus Estimate for 2025 EPS has decreased from $6.87 to $6.76 over the past 60 days, while the estimate for 2026 has also dipped from $6.07 to $6.04 [18]. Generic Competition - BMY's legacy portfolio is negatively impacted by generic competition affecting key drugs such as Revlimid, Pomalyst, Sprycel, and Abraxane, along with the redesign of U.S. Medicare Part D [5]. - Sales of Eliquis, a major revenue contributor, fell by 4% in the first quarter due to the Medicare Part D redesign, although sales are expected to rise in the second half of 2025 as the coverage gap is eliminated [6]. New Drug Developments - BMY is focusing on newer drugs like Opdualag, Reblozyl, and Breyanzi to stabilize revenue as legacy drugs face competition; Reblozyl has shown strong growth since its approval [7]. - The immuno-oncology drug Opdivo has also seen solid revenue growth driven by volume increases, and recent approvals for new formulations and treatment regimens are expected to enhance its market position [9][10]. Pipeline Setbacks - Recent pipeline setbacks have negatively impacted BMY's stock, including disappointing results from the late-stage ODYSSEY-HCM study for Camzyos and the ARISE study for Cobenfy, which did not meet primary endpoints [13][14]. Debt and Valuation - BMY's strategy of acquiring companies has led to a high debt ratio, with long-term debt at $46.1 billion against cash and equivalents of $12.1 billion as of March 31, 2025 [15]. - The company's shares currently trade at a price/earnings ratio of 7.24x forward earnings, below its historical mean and the large-cap pharma industry's average [16]. Investment Outlook - Despite challenges, BMY's newer drugs and collaborations are expected to stabilize revenue and diversify its portfolio; however, the impact of generic competition remains a significant concern [20]. - The attractive dividend yield of 5.35% is a compelling reason for existing investors to maintain their positions in the stock [20].

Core Insights - Bristol Myers (BMY) is focusing on newer drugs like Opdualag, Reblozyl, and Breyanzi to stabilize its revenue as legacy drugs face generic competition [1][9] - The performance of new drugs is crucial for BMY's growth, with Reblozyl showing strong growth in treating myelodysplastic syndromes-associated anemia [2] - BMY's shares have declined 15% year to date, underperforming the industry, which has seen a decline of 3.4% [8] Revenue and Drug Performance - Legacy drugs such as Revlimid, Pomalyst, Sprycel, and Abraxane are negatively impacted by generic competition and changes in U.S. Medicare Part D [1][9] - Sales of Eliquis, a blood thinner, decreased by 4% in the first quarter due to the Medicare Part D redesign [1] - Opdivo, a leading immuno-oncology drug, has experienced revenue growth primarily driven by volume [3] New Drug Approvals and Market Expansion - BMY has received FDA approval for xanomeline and trospium chloride (Cobenfy), a new treatment for schizophrenia, which is expected to contribute significantly to revenue [3][4] - Reblozyl is anticipated to have a substantial impact on BMY's revenue in the coming decade due to its strong performance [2] Competitive Landscape - The immuno-oncology market is competitive, with Merck's Keytruda dominating and accounting for around 50% of Merck's pharmaceutical sales [5] - Pfizer is also a significant player in oncology, with a diverse product portfolio and recent licensing agreements to enhance its offerings [6][7] Valuation and Earnings Estimates - BMY is trading at a forward earnings multiple of 7.34x, below its historical average of 8.54x and the large-cap pharma industry's average of 14.79x [9][10] - The Zacks Consensus Estimate for BMY's earnings per share has decreased over the past 60 days, indicating a downward trend in earnings expectations [11]

Company Overview - Bristol-Myers Squibb is a leading global specialty biopharmaceutical company focused on developing treatments for severe diseases [12] - The company has a diverse portfolio that includes blockbuster immuno-oncology drug Opdivo and essential immunology and cardiovascular drugs like Orencia and Eliquis [12] Financial Performance - For fiscal 2025, 11 analysts have revised their earnings estimate upwards in the last 60 days, increasing the Zacks Consensus Estimate by $0.10 to $6.85 per share [13] - Bristol-Myers Squibb boasts an average earnings surprise of 20.2% [13] Investment Ratings - The company currently holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of A [13] - Bristol-Myers Squibb has a Momentum Style Score of B, and its shares have increased by 4.2% over the past four weeks [13] - With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, Bristol-Myers Squibb is recommended for investors' short list [14]

Core Viewpoint - Bristol Myers (BMY) has underperformed the market, with a 20.7% decline in shares over the past three months compared to a 9.6% decline in the industry [1][3]. Financial Performance - Despite a better-than-expected first-quarter performance and an increase in annual revenue guidance, BMY's stock has declined, likely due to broader market concerns and skepticism about growth prospects [4]. - Eliquis, a key drug for BMY, saw a 4% decrease in sales in the first quarter, attributed to the redesign of Medicare Part D in the U.S. [5]. Drug Portfolio and Competition - BMY is facing challenges from generic competition affecting its legacy drugs, including Revlimid, Pomalyst, Sprycel, and Abraxane [4]. - The company is relying on newer drugs such as Opdualag, Reblozyl, and Breyanzi to stabilize its revenue base [6]. - Opdivo, a leading immuno-oncology drug, has shown solid revenue growth primarily driven by volume [7]. Regulatory Approvals - Recent approvals for Opdivo and Cobenfy are expected to enhance BMY's portfolio, with Cobenfy being the first new pharmacological approach to treating schizophrenia in decades [10][12]. Pipeline Challenges - BMY has faced setbacks in its pipeline, including disappointing results from the ODYSSEY-HCM study for Camzyos and the ARISE study for Cobenfy [11][12]. Financial Health - As of March 31, 2025, BMY reported cash and equivalents of $12.1 billion against a long-term debt of $46.1 billion, indicating a high debt ratio [13]. - BMY's shares currently trade at a price/earnings ratio of 7.16x forward earnings, lower than its historical mean and the large-cap pharma industry average [14]. Earnings Estimates - The Zacks Consensus Estimate for 2025 EPS has increased to $6.89 from $6.75 over the past 60 days, while the estimate for 2026 remains unchanged at $6.08 [16]. Investment Outlook - BMY's newer drugs and pipeline diversification are seen as stabilizing factors amid generic competition, but the company is advised to wait and watch due to recent setbacks [18]. - The attractive dividend yield of 5.29% is a reason for existing investors to remain invested [18].

Core Viewpoint - Zacks Premium offers various tools and resources to help investors make informed decisions and maximize their stock market investments [1][2]. Zacks Style Scores - Zacks Style Scores are complementary indicators that rate stocks based on value, growth, and momentum methodologies, aiding investors in selecting stocks likely to outperform the market in the short term [2][3]. - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3]. Value Score - The Value Score identifies attractive and discounted stocks using ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3]. Growth Score - The Growth Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [4]. Momentum Score - The Momentum Score helps investors capitalize on price trends, utilizing factors like one-week price changes and monthly earnings estimate changes [5]. VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investing strategies [6]. Zacks Rank - The Zacks Rank is a proprietary model based on earnings estimate revisions, which has shown strong performance, with 1 (Strong Buy) stocks averaging a +25.41% annual return since 1988, significantly outperforming the S&P 500 [7][8]. - There are over 800 stocks rated 1 or 2, making it essential for investors to use Style Scores to identify the best opportunities [9]. Stock to Watch: Bristol Myers Squibb (BMY) - Bristol Myers Squibb is a leading biopharmaceutical company focused on severe disease treatments, with a strong portfolio including the immuno-oncology drug Opdivo and other essential drugs [11]. - BMY holds a 3 (Hold) Zacks Rank and a VGM Score of A, with a Value Style Score of A due to a forward P/E ratio of 6.8, making it attractive for value investors [12]. - Recent analyst revisions have increased the earnings estimate for fiscal 2025 by $0.14 to $6.89 per share, with an average earnings surprise of 20.2% [12].