By Helena Smolak

Bayer is scheduled to report results for the fourth quarter on Wednesday. Here is what you need to know.

SALES FORECAST: The German pharmaceutical and agricultural conglomerate is expected to post sales of 11.26 billion euros ($11.71 billion) for the quarter ended December, according to a Vara Research consensus. The forecast is below sales of 11.86 billion euros Bayer reported for the same quarter the previous year.

PROFIT FORECAST: Net profit is forecast to come in at 463 million euros, according to the consensus, down from 1.34 billion euros in the year-earlier period. Earnings before interest, taxes, depreciation, amortization and special items--a metric closely watched by analysts and investors--are expected to fall to 2.27 billion euros from 3.02 billion euros, according to the same consensus.

Shares in Bayer fell 36% during the fourth quarter, but have risen 23% since the beginning of 2025.

WHAT TO WATCH

--OUTLOOK: Investors' focus will be on Bayer's 2025 outlook and particularly on its cash flow, UBS analysts said in a note. The company guided for 2024 free cash flow of 2 billion to 3 billion euros, excluding currency movements, but its 2025 cash generation could be hit by restructuring charges, UBS said. At its third-quarter results, Bayer said its three businesses faced challenges heading into 2025, analysts at Barclays said in a note.

--DRUG PIPELINE: Bayer's blockbuster blood-thinning drug Xarelto is likely to face rising generic competition this year and investors will want to know how prostate-cancer drug Nubeqa and kidney-disease treatment Kerendia can compensate for the shortfall, UBS said. Among the new drugs that have yet to be launched on the market, its heart drug acoramidis has already received approval. In addition, a decision on its menopause drug elinzanetant is due in the next few months, UBS analysts said.

--LITIGATION: A favorable ruling for Bayer in August in one of the cases regarding its glyphosate weedkiller, marketed as Roundup, gives the company another chance to take its case to the U.S. Supreme Court, Barclays analysts said. Acceptance of an appeal by the court could be a major boost for Bayer's shares given that a favorable ruling could bring the litigation to an end, Barclays said.

--TARIFFS: U.S. tariffs could affect Bayer both positively and negatively, UBS said. The company could face headwinds due to the raw materials it sources from China, but also benefit from competitive headwinds in light of Chinese-manufactured glyphosate, the analysts said.

Write to Helena Smolak at helena.smolak@wsj.com

(END) Dow Jones Newswires

March 04, 2025 07:46 ET (12:46 GMT)

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