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Pfizer Inc. (PFE), headquartered in New York, is a global biopharmaceutical company that discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products in the U.S., Europe, and internationally. It boasts a sustainable pipeline of late-stage programs and commands an impressive market cap of $164.9 billion. It plans to release its Q2 earnings for fiscal 2024 on Tuesday, Jul. 30.
Ahead of the event, analysts expect Pfizer to report a profit of $0.45 per share, down 32.8% from $0.67 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in each of the last four quarters.
Pfizer's EPS plunged 33% year over year to $0.82 in the last reported quarter due to decreased demand for Paxlovid and its COVID-19 vaccine. However, this figure still exceeded the Wall Street’s estimates by 46.4%.
Looking ahead, analysts expect Pfizer to report an EPS of $2.39 in fiscal 2024, up 29.9% from $1.84 in fiscal year 2023. Its fiscal 2025 EPS is projected to rise 15.5% annually to $2.76.
PFE’s stock has dipped 19.9% over the past 52 weeks, significantly underperforming the broader S&P 500 Index's ($SPX) 25% gains and the S&P 500 Healthcare Sector SPDR’s (XLV) 12.2% returns over the same time frame.
PFE’s underwhelming performance in the broader market can be linked to a significant decline in demand for its COVID-19 products. Pfizer also faces challenges with the twice-daily experimental weight loss pill that did not meet clinical expectations. Additionally, competitive pressures and price decreases for drugs like Ibrance, along with reduced global demand, particularly in key markets such as China, contributed to the slowdown in its topline in Q1. Consequently, Pfizer reported revenue of $14.9 billion, surpassing expectations by 6.9% but down 20% year over year.
Despite these challenges, PFE shares rose 6.1% following the release of its Q1 earnings report on May 1. The market was impressed with its solid non-COVID product sales and updated full-year profit outlook. Pfizer expects adjusted EPS between $2.15 and $2.35, up from its prior guidance range of $2.05 to $2.25. Management projects revenue between $58.5 billion and $61.5 billion, including $5 billion from its COVID vaccine and $3 billion from Paxlovid. Plus, cost-cutting efforts are projected to save at least $4 billion by year-end.
The current consensus opinion on Pfizer stock is “Moderate Buy” overall. Among the 21 analysts covering the stock, eight recommend a "Strong Buy," one suggests a "Moderate Buy," and 12 advise a "Hold."
Furthermore, the average analyst price target for Pfizer is $33.47, indicating a potential upside of 15% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
