Bristol-Myers Squibb Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Bristol-Myers Squibb (NYSE:BMY) will unveil its latest earnings on Wednesday, October 24, 2012. 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 analyst estimate is for profit of 41 cents per share, a decline of 32.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 43 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 42 cents during the last month. For the year, analysts are projecting net income of $1.92 per share, a decline of 15.8% from last year.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the second quarter, it reported profit of 48 cents per share against a mean estimate of 49 cents. Two quarters ago, it beat expectations by 3 cents with net income of 64 cents.

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A Look Back: In the second quarter, profit fell 28.5% to $645 million (38 cents a share) from $902 million (52 cents a share) the year earlier, missing analyst expectations. Revenue fell 18.2% to $4.44 billion from $5.43 billion.

Wall St. Revenue Expectations: Analysts predict a decline of 25.7% in revenue from the year-earlier quarter to $3.97 billion.

Stock Price Performance: Between August 22, 2012 and October 18, 2012, the stock price had risen $2.48 (7.8%), from $31.81 to $34.29. The stock price saw one of its best stretches over the last year between July 11, 2012 and July 19, 2012, when shares rose for seven straight days, increasing 4.5% (+$1.56) over that span. It saw one of its worst periods between August 3, 2012 and August 13, 2012 when shares fell for seven straight days, dropping 3.3% (-$1.07) over that span.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 11.4% in the third quarter of the last fiscal year, 6.7% in the fourth quarter of the last fiscal year and 4.8%in the first quarter before dropping in the second quarter.

The company is looking to get back on track with this earnings announcement after a profit drop last quarter snapped a positive string of results. Net income rose 2.1% in the third quarter of the last fiscal year, 76.4% in the fourth quarter of the last fiscal year and 11.7% in the first quarter before declining in the second quarter.

Analyst Ratings: There are mostly holds on the stock with 11 of 20 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.58 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.

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

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