Excluding Bristol Myers Squibb, the S&P 500 would report revenue growth of more than 8% for Q1

The compound annual earnings growth rate (combining actual and estimated results) for the S&P 500 for Q1 2024 is 5.4%. If 5.4% is the actual growth rate for the quarter, it will mark the highest year-over-year earnings growth rate reported by the index since Q2 2022 (5.8%).

As previously mentioned, the top five contributors to the index’s earnings growth for Q1 are the “Magnificent 7” companies: NVIDIA, Alphabet, Amazon.com, Meta Platforms and Microsoft. Excluding these five companies, the S&P 500 would report a year-over-year earnings decline of -2.4%, rather than a 5.4% earnings increase for Q1.

On the other hand, which company is the biggest detractor for S&P 500 earnings growth for Q1 2024?

Bristol Myers Squibb is the biggest detractor of S&P 500 earnings growth for the first quarter. On April 25, the company reported EPS (non-GAAP) of -$4.40 for Q1 2024, compared to EPS (non-GAAP) of $2.05 for Q1 2023. The non-GAAP EPS number for Q1 2024 included a net impact of -$6.30 due to “Purchased IPRD fees and license revenues are primarily driven by the acquisition of Karuna Therapeutics assets and the SystImmune collaboration.” On a dollar level, the company reported a year-over-year decline in (non-GAAP) earnings of more than $13 billion. If Bristol Myers Squibb were excluded, the combined earnings growth rate for the S&P 500 for Q1 2024 would improve to 8.3% from 5.4%.

Bristol Myers Squibb is a company in the Healthcare sector. This sector is reporting a year-over-year earnings decline of -25.4% for Q1 2024. Other companies in the health care sector that are significantly detracting from earnings growth (year-over-year) for the S&P 500 for Q1 2024 are Gilead Sciences ($-1.32 vs $1.37) and Pfizer ($0.82 vs $1.23). If Bristol Myers Squibb, Gilead Sciences and Pfizer were excluded, the combined earnings growth rate for the S&P 500 would improve to 9.7% from 5.4%.

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