Bristol-Myers Squibb Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Bristol-Myers Squibb (NYSE:BMY) will unveil its latest earnings tomorrow, Thursday, January 24, 2013. Bristol-Myers Squibb is a global company that develops, manufactures, and sells pharmaceutical products.

Bristol-Myers Squibb Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 43 cents per share, a decline of 18.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 40 cents. Between one and three months ago, the average estimate moved up. It has dropped from 44 cents during the last month. Analysts are projecting profit to rise by 14.5% compared to last year’s $1.95.

Past Earnings Performance: The company is hoping to beat estimates after missing the mark for two straight quarters. Last quarter, it reported net income of 37 cents per share against an estimate of profit of 41 cents per share. The quarter before that, it missed forecasts by one cent.

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A Look Back: In the third quarter, the company swung to a loss of $711 million (43 cents a share) from a profit of $969 million (56 cents) a year earlier, missing analyst expectations. Revenue fell 30.1% to $3.74 billion from $5.34 billion.

Here’s how Bristol-Myers Squibb traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

BMY

Wall St. Revenue Expectations: Analysts are projecting a decline of 24% in revenue from the year-earlier quarter to $4.14 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.13 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.58 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 17.2% to $8.2 billion while assets decreased 15.8% to $9.28 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 18.2% in the second quarter and dropped again in the third quarter.

Analyst Ratings: There are mostly holds on the stock with 12 of 20 analysts surveyed giving that rating.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)