The weak leadership of Bristol-Myers is an underestimated opportunity News ad

Stock Bristol-Myers Squibb NYSE: BmyThey are trying to return to a positive territory after a sharp sale after making a profit. The company won from above and the result. Nevertheless, the careful guidance of the 2025 biopharmaceutical giant forced some investors heading for the exit. In midday trade, BMY shares are approximately 2%. However, shares decreased by about 3.8% in the open market.

The early movement of prices for shares, as a rule, is dictated by high -speed trading programs that are designed to move first and analyze the second place. The fact that BMY shares do not go beyond their minimums and that he was a favorite of analysts before the income report suggests that it would take a minute to find out that he showed a report on income and what it can mean for shares.

Bristol-Myers announced a share of $ 1.67. This defeated estimates of $ 1.47 by 13.6%. Revenue No. 12.3 billion was also higher than a forecast of $ 11.57 billion. Revenue for the whole year in the amount of 48.26 billion dollars. The United States was 7% higher than 45.02 billion dollars. USA in 2023.

Medical reservesEspecially in the healthcare sector, they are the best in early 2025. However, the company’s commentary to the results indicates a fundamental problem that bothers investors and analysts. That is, can new products of the company bring enough income to compensate for a decrease in sales in its outdated drugs?

For its part, Bristol-Myers predicts a decrease in revenue compared to last year (YOY) from 5 to 45.5 billion dollars. USA. This is only slightly higher than 45.02 billion dollars. The USA, which he brought in 2023. And the company’s own forecasts show that the growth of income for drugs such as OPDIVA and Orencia is more than compensated, since its outdated drugs are faced with competition.

Like many biopharmaceutical companies, commercially affordable Bristol-Myers medicines are divided into an outdated portfolio and growth portfolio. As the name implies, its outdated portfolio consists of drugs that exist for many years. Nevertheless, this means that they are now faced with biological (i.e., general) competition.

In the case of Bristol-Myers, two of these drugs are Eliquis and Revlimid, which are No. 1 and No. 3, respectively, contribute to the total income of the company. Eliquis continues to demonstrate strength in the United States and introduces more than 25% of the total income of the company, but the revenue decreased by 1% at the international level. Nevertheless, the company expects that its other obsolete drugs, Revlimid, Pomalyst, Sprycel and Abraxane will face a decrease in sales from competition.

Nevertheless, the company’s growth portfolio has at least several years before some of its main names are faced with bi -like competition. But the company counts on big things from Cobenfy, its new drug for schizophrenia, is the first new treatment of the disease over 30 years. This has a blockbuster potential, but it’s too early to speak.

Analysts remain optimistic on BMY shares

Bristol-Myers warned that he would receive an easier income compared to last year for one of his outdated drugs, Revlimid, to earnings. Of course, the company announced a decrease in years, especially in international sales. And the company’s management suggests that the trend will continue.

This indicates the firm financial indicators of the company, which included an operational cash flow of $ 4.4 billion. The United States per quarter, which will lead to the total amount of funds for 11.2 billion dollars. USA. Bristol-Myers also published a gross margin throughout the year in the amount of approximately 71%.

It also suggests that this post-reception below can set up higher movement. And when you take this potential growth with highly profitable (4.2%) dividends of the company, BMY may be a better opportunity than it seems.

The total short percentage is low, but a month before earnings increased by more than 10%. This was probably the answer that BMY shares rose to a 52-week maximum. This can save some pressure on reserves, since it is unreliable close to its 50-day simple sliding medium (SMA). If this is not so, investors may want to see if the support of support around its 100-day SMA is finding about $ 55.60.