Pfizer Set to Announce Earnings Amid Mixed Market Reactions
Pfizer Inc. (PFE), a biopharmaceutical giant with a market cap of $152.2 billion, is poised to release its fiscal Q4 earnings on Tuesday, Feb. 4, prior to market opening. The company is committed to improving global health through innovative medicines and vaccines, including its widely recognized products like Eliquis, Comirnaty, and Paxlovid.
Analysts project a remarkable comeback for Pfizer, anticipating a profit of $0.48 per share in the upcoming quarter, a significant increase from last year’s $0.10 per share. Historically, PFE outperformed Wall Street’s earnings expectations for the last four quarters, showcasing a 65.6% beat in Q3 alone.
For fiscal 2024, expectations suggest an EPS of $2.94, which reflects a 59.8% increase from $1.84 in fiscal 2023.
Over the past year, Pfizer’s stock has declined by 7.5%, contrasting with the 22.1% rise of the S&P 500 Index ($SPX) and a slight drop in the Health Care Select Sector SPDR Fund (XLV). Such performance raises questions about the future trajectory of the company.
Even after a strong Q3 showing, where Pfizer reported impressive revenue of $17.7 billion and adjusted earnings of $1.06 per share, the stock fell by 1.4% on Oct. 29. This decline appeared to stem from mixed investor sentiments. While gains were bolstered by COVID-related products, interim concerns regarding CEO Albert Bourla’s defense of recent acquisitions raised eyebrows, particularly from activist investor Starboard Value, causing trepidation over potential misallocation of funds. Despite an upward revision of its revenue projection for 2024 to a range of $61 billion – $64 billion and anticipated earnings of $2.75 – $2.95 per share, skepticism about long-term growth prospects outside COVID products dampened enthusiasm.
Analysts are maintaining a cautiously optimistic stance on Pfizer’s stock, reflected in a “Moderate Buy” consensus. Out of 24 analysts following PFE, 11 advocate a “Strong Buy,” 12 recommend a “Hold,” and one suggests “Strong Sell.” Compared to three months ago, this outlook is slightly improved.
Currently, shares of PFE are trading below the average analyst price target of $31.43, indicating potential for growth.
On the date of publication,
Sohini Mondal
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