The Zacks Analyst Blog Highlights:Bristol-Myers Squibb, Sanofi, Amylin Pharmaceuticals, Eli Lilly and Pfizer
CHICAGO, July 24, 2012 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Bristol-Myers Squibb Company (NYSE:BMY), Sanofi (NYSE:SNY), Amylin Pharmaceuticals, Inc. (Nasdaq:AMLN), Eli Lilly (NYSE:LLY) and Pfizer (NYSE:PFE).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Monday's Analyst Blog:
Earnings Preview: Bristol-Myers Squibb
Biopharmaceutical giant Bristol-Myers Squibb Company (NYSE:BMY) is all set to unveil its second quarter 2012 results before the start of trading on July 25, 2012. The Zacks Consensus Estimate for the second quarter of 2012 is 50 cents (year-over-year decrease of 10.7%) on revenues of $4,460 million (year-over-year decrease of 17.9%).
First Quarter Recap
Bristol-Myers' first quarter 2012 earnings (excluding special items) of 64 cents per share beat the Zacks Consensus Estimate of 61 cents. First quarter earnings increased 10% from the year-ago period. Strong revenues aided earnings in the reported quarter. Newly launched products did very well during the quarter.
Net sales in the reported quarter climbed 5% to $5.25 billion. Revenues were just shy of the Zacks Consensus Estimate of $5.26 billion, mainly due to lower sales of Plavix and Avapro/Avalide. US net sales in the quarter climbed 6% to $3.5 billion. Sales in international markets increased 2% to $1.8 billion.
Agreement of Estimate Revisions
Over the last 30 days, 6 of the 14 analysts covering Bristol-Myers for the second quarter of 2012 have revised their earnings estimates, 3 in either direction. The second quarter of 2012 saw blockbuster blood-thinner Plavix, co-developed with Sanofi (NYSE:SNY), going off patent in the US (May 17, 2012). The loss of exclusivity on Plavix in the US will result in substantial revenue losses for Bristol-Myers.
The impact of Plavix's loss of exclusivity is more accurately reflected by the significant downward bias for the third quarter of 2012. During the last 30 days, 6 analysts have trimmed their estimates for the third quarter of 2012 with a sole upward movement.
Annual earnings estimates for fiscal 2012 and fiscal 2013 too have witnessed a significant downward bias over the last 30 days. While fiscal 2012 estimates have been slashed by 7 analysts with a sole upward movement over the last 30 days, fiscal 2013 estimates have been trimmed by 8 analysts with a sole upward movement over a similar time period.
Bristol-Myers is looking to combat the generic threat through partnering deals and acquisitions. Towards fulfilling this objective and bolstering its position in the lucrative diabetes market, Bristol-Myers announced in June 2012 that it will purchase Amylin Pharmaceuticals, Inc. (Nasdaq:AMLN), for $31.00 per share or approximately $5.3 billion in cash.
Apart from acquisitions and partnership deals, Bristol-Myers is looking to introduce new products to augment its product portfolio to combat the generic threat. In July 2012, Bristol-Myers received some good news on this front when the US Food and Drug Administration (FDA) approved a label expansion of cancer drug, Erbitux, co-developed with Eli Lilly (NYSE:LLY).
The companies gained approval for the use of Erbitux as a first-line treatment in combination with FOLFIRI in patients with wild-type KRAS, epidermal growth factor receptor -expressing metastatic colorectal cancer.
However, Bristol-Myers has also suffered a couple of setbacks over the last few months. In July 2012, the company suffered a pipeline setback when its candidate, brivanib, performed disappointingly in a phase III study (BRISK-FL) in the hepatocellular carcinoma indication.
In June 2012, the company suffered a regulatory setback when the FDA declined to approve Bristol-Myers/Pfizer's (NYSE:PFE) anti-clotting drug Eliquis (apixaban) on the basis of the submitted data and issued a complete response letter. Bristol-Myers and Pfizer are looking to get the blood thinner approved in the US for preventing strokes and systemic embolism in patients suffering from nonvalvular atrial fibrillation (AF). AF refers to a cardiac rhythm disorder characterized by an erratic heartbeat.
Magnitude of Estimate Revisions
The earnings estimate for the second quarter of 2012 has remained static at 50 cents over the last 30 days with the positive revisions canceling out the downward movements. Given the downward bias in earnings estimate revisions over the last month, earnings estimates for the third quarter, fiscal 2012 and fiscal 2013 have gone down by a penny, 2 cents and 5 cents to 42 cents, $1.94 and $1.88 respectively.
Surprise History
Bristol-Myers has surpassed earnings estimates in three of the last four quarters. The company, while missing estimates in the final quarter of 2011, recorded a maximum positive surprise of 5.17% in the third quarter of 2011. On an average, the earnings surprise was 2.07%.
Our Recommendation
We currently have a Neutral recommendation on Bristol-Myers. The stock carries a Zacks #3 Rank (Hold rating) in the short run. Even though we are concerned about the high generic risk on many of Bristol-Myers' leading franchises, we believe that the company's diversified business model coupled with its strong financial position will help in tough situations.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
SOURCE Zacks Investment Research, Inc.
Share this article