Bristol-Myers Squibb Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Bristol-Myers Squibb (NYSE:BMY) will unveil its latest earnings on Wednesday, July 25, 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 50 cents per share, a decline of 10.7% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. For the year, analysts are projecting net income of $1.94 per share, a decline of 14.9% from last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the first quarter, it reported profit of 64 cents per share against a mean estimate of net income of 61 cents per share. In the fourth quarter of the last fiscal year, it missed forecasts by 2 cents.

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Wall St. Revenue Expectations: Analysts predict a decline of 17.9% in revenue from the year-earlier quarter to $4.46 billion.

A Look Back: In the first quarter, profit rose 11.7% to $1.1 billion (64 cents a share) from $986 million (57 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 4.8% to $5.25 billion from $5.01 billion.

Stock Price Performance: Between May 22, 2012 and July 19, 2012, the stock price had risen $3.32 (10.1%), from $32.83 to $36.15. The stock price saw one of its best stretches over the last year between September 9, 2011 and September 20, 2011, when shares rose for eight straight days, increasing 8% (+$2.33) over that span. It saw one of its worst periods between April 2, 2012 and April 10, 2012 when shares fell for six straight days, dropping 4.2% (-$1.42) over that span.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 2.1% in the third quarter of the last fiscal year and 76.4% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 14% in the second quarter of the last fiscal year, 11.4% in the third quarter of the last fiscal year and 6.7% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Analyst Ratings: With 10 analysts rating the stock as a buy, one rating it as a sell and nine rating it as a hold, there are indications of a bullish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.63 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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