Bristol-Myers Squibb Company (NYSE:BMY) Just Released Its Annual Results And Analysts Are Updating Their Estimates

Bristol-Myers Squibb Company (NYSE:BMY) shareholders are probably feeling a little disappointed, since its shares fell 2.9% to US$47.98 in the week after its latest yearly results. The result was positive overall - although revenues of US$45b were in line with what the analysts predicted, Bristol-Myers Squibb surprised by delivering a statutory profit of US$3.86 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Bristol-Myers Squibb

Taking into account the latest results, the current consensus from Bristol-Myers Squibb's 25 analysts is for revenues of US$45.9b in 2024. This would reflect a modest 2.1% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 5.3% to US$4.15. In the lead-up to this report, the analysts had been modelling revenues of US$45.7b and earnings per share (EPS) of US$4.01 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at US$60.10, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Bristol-Myers Squibb at US$85.00 per share, while the most bearish prices it at US$41.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Bristol-Myers Squibb's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 2.1% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.7% per year. Factoring in the forecast slowdown in growth, it seems obvious that Bristol-Myers Squibb is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Bristol-Myers Squibb following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Bristol-Myers Squibb's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$60.10, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Bristol-Myers Squibb going out to 2026, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Bristol-Myers Squibb that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.