Pfizer’s Upcoming Q3 Earnings: Analysts Predict Strong Turnaround
Market Cap and Key Earnings Highlights
Pfizer Inc. (PFE), with a market cap of $164.8 billion, is known for its range of medicines and vaccines, particularly the Pfizer–BioNTech COVID-19 vaccine. The company operates across several therapeutic areas, including immunology, oncology, cardiology, endocrinology, and neurology. On Tuesday, Oct. 29, before the market opens, Pfizer is expected to release its fiscal Q3 earnings results.
Analysts Anticipate Strong Earnings Growth
This time around, analysts predict that the biopharmaceutical firm will report a profit of $0.62 per share, marking a significant turnaround from a loss of $0.17 per share in the same quarter last year. Pfizer has successfully surpassed Wall Street’s earnings estimates in the past four quarters.
Cost-Cutting and Positive Sales Figures Boost Q2 Results
In its Q2 earnings report, Pfizer achieved an EPS of $0.60, which exceeded analyst expectations by 33.3%. The boost in performance is attributed to effective cost-cutting strategies, enhanced sales of the COVID-19 antiviral pill “Paxlovid,” and strong sales figures from non-COVID medications.
Future Earnings and Predictions for 2024
Looking ahead to fiscal 2024, analysts forecast an EPS of $2.66 for PFE, representing a notable increase of 44.6% compared to $1.84 in fiscal 2023.
PFE Stock Performance Compared to Market Peers
Since the beginning of the year, shares of PFE have gained 3%, trailing behind both the S&P 500 Index’s ($SPX) 22.4% surge and the Health Care Select Sector SPDR Fund’s (XLV) 13% return.
Recent Turbulence Amidst Investor Activity
On Oct. 10, shares of PFE saw a 2.8% decline after activist investor Starboard Value alleged that Pfizer threatened two of its former executives, who had initially shown support for Starboard’s initiatives. This came after Starboard Value acquired a $1 billion stake in Pfizer on Oct. 7, generating hope for a turnaround.
Q2 Earnings Impress Investors
On Jul. 30, Pfizer’s stock rose 2.2% following its Q2 earnings announcement. The company reported a profit and a revenue of $13.28 billion, which was a 2% annual increase and came in above Wall Street’s expectation of $12.96 billion. This, coupled with a raised full-year 2024 EPS and revenue guidance, reinforced investor confidence.
Analysts Remain Optimistic on Pfizer’s Future
The general outlook on Pfizer’s stock is moderately optimistic, with a “Moderate Buy” rating overall. Out of 21 analysts monitoring the stock, nine recommend a “Strong Buy,” while 12 suggest holding the stock. This indicates a slight improvement from three months ago when eight analysts had recommended a “Strong Buy.” The average analyst price target for PFE stands at $33.10, suggesting a potential upside of 13.8% from current levels.
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On the date of publication, Rashmi Kumari 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.
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