Q4 Earnings Outperformers: Bristol-Myers Squibb (NYSE:BMY) And The Rest Of The Branded Pharmaceuticals Stocks

As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the branded pharmaceuticals industry, including Bristol-Myers Squibb (NYSE:BMY) and its peers.

Looking ahead, the branded pharmaceutical industry is positioned for tailwinds from advancements in precision medicine, increasing adoption of AI to enhance drug development efficiency, and growing global demand for treatments addressing chronic and rare diseases. However, headwinds include heightened regulatory scrutiny, pricing pressures from governments and insurers, and the looming patent cliffs for key blockbuster drugs. Patent cliffs bring about competition from generics, forcing branded pharmaceutical companies back to the drawing board to find the next big thing.

The 10 branded pharmaceuticals stocks we track reported a mixed Q4. As a group, revenues missed analysts’ consensus estimates by 1.6%.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Bristol-Myers Squibb (NYSE:BMY)

With roots dating back to 1887 and a transformative merger in 1989 that gave the company its current name, Bristol-Myers Squibb (NYSE:BMY) discovers, develops, and markets prescription medications for serious diseases including cancer, blood disorders, immunological conditions, and cardiovascular diseases.

Bristol-Myers Squibb reported revenues of $12.5 billion, up 1.4% year on year. This print exceeded analysts’ expectations by 4.8%. Overall, it was an exceptional quarter for the company with full-year revenue guidance exceeding analysts’ expectations and a solid beat of analysts’ revenue estimates.

Interestingly, the stock is up 8.1% since reporting and currently trades at $62.28.

Is now the time to buy Bristol-Myers Squibb? Access our full analysis of the earnings results here, it’s free.

Best Q4: Eli Lilly (NYSE:LLY)

Founded in 1876 by a Civil War veteran and pharmacist frustrated with the poor quality of medicines, Eli Lilly (NYSE:LLY) discovers, develops, and manufactures pharmaceutical products for conditions including diabetes, obesity, cancer, immunological disorders, and neurological diseases.

Eli Lilly reported revenues of $19.29 billion, up 42.6% year on year, outperforming analysts’ expectations by 7.4%. The business had an exceptional quarter with a solid beat of analysts’ revenue estimates and full-year revenue guidance exceeding analysts’ expectations.

Eli Lilly achieved the fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $1,004.

Is now the time to buy Eli Lilly? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Corcept (NASDAQ:CORT)

Focusing on the powerful stress hormone that affects everything from metabolism to immune function, Corcept Therapeutics (NASDAQ:CORT) develops and markets medications that modulate cortisol to treat endocrine disorders, cancer, and neurological diseases.

Corcept reported revenues of $202.1 million, up 11.1% year on year, falling short of analysts’ expectations by 18.5%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.

As expected, the stock is down 3.3% since the results and currently trades at $35.26.

Read our full analysis of Corcept’s results here.

Supernus Pharmaceuticals (NASDAQ:SUPN)

With a diverse portfolio of eight FDA-approved medications targeting neurological conditions, Supernus Pharmaceuticals (NASDAQ:SUPN) develops and markets treatments for central nervous system disorders including epilepsy, ADHD, Parkinson's disease, and migraine.

Supernus Pharmaceuticals reported revenues of $211.6 million, up 21.5% year on year. This result beat analysts’ expectations by 8.4%. It was a very strong quarter as it also produced a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

Supernus Pharmaceuticals delivered the biggest analyst estimates beat but had the weakest full-year guidance update among its peers. The stock is up 4.7% since reporting and currently trades at $55.81.

Read our full, actionable report on Supernus Pharmaceuticals here, it’s free.

Zoetis (NYSE:ZTS)

Originally spun off from Pfizer in 2013 as the world's largest pure-play animal health company, Zoetis (NYSE:ZTS) discovers, develops, and sells medicines, vaccines, diagnostic products, and services for pets and livestock animals worldwide.

Zoetis reported revenues of $2.39 billion, up 3% year on year. This number topped analysts’ expectations by 0.8%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ full-year EPS guidance estimates and a beat of analysts’ EPS estimates.

The stock is down 1.9% since reporting and currently trades at $126.20.

Read our full, actionable report on Zoetis here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.