What Do Analysts Think About Bristol-Myers Squibb Company’s (NYSE:BMY) Earnings Trend?
Bristol-Myers Squibb Company’s (NYSE:BMY) announced its latest earnings update in December 2017, which indicated that the business experienced a major headwind with earnings falling by -77.41%. Below, I’ve laid out key numbers on how market analysts view Bristol-Myers Squibb’s earnings growth outlook over the next couple of years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. See our latest analysis for Bristol-Myers Squibb
Market analysts’ prospects for next year seems buoyant, with earnings growth more than doubling. Earnings continue to grow strongly in the next couple of years, finally reaching US$6.63B in 2021.
Although it’s helpful to understand the growth each year relative to today’s value, it may be more beneficial to analyze the rate at which the company is growing every year, on average. The benefit of this technique is that it removes the impact of near term flucuations and accounts for the overarching direction of Bristol-Myers Squibb’s earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 18.66%. This means, we can presume Bristol-Myers Squibb will grow its earnings by 18.66% every year for the next couple of years.
Next Steps:
For Bristol-Myers Squibb, I’ve compiled three essential aspects you should further research:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is BMY worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether BMY is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of BMY? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
