Investing in Pfizer Stock PFE

Albert Bourla is the pharmaceutical giant’s current chief executive officer (CEO). Pfizer is classified as a member of the S&P 500 healthcare sector and operates within the biotechnology and pharmaceutical industry. Inc. (MRK), Switzerland-based https://bigbostrade.com/ Roche Holding AG (RHHBY), and Eli Lilly and Co. (LLY). Pfizer reported adjusted net income attributable to its common shareholders of $25.2 billion on $81.3 billion in annual revenue in its 2021 fiscal year (FY).

This can primarily be attributed to a $5.6 billion charge related to non-cash inventory write-offs and other charges. The adjusted loss of $0.17 per share was significantly lower than the profit per share of $1.78 in the prior-year quarter. Pfizer’s revenue of $13.2 billion in Q3 was down 42% y-o-y, primarily due to lower sales of its Covid-19 products.

1. Selling Pfizer following its recent beating looks like the wrong move.
2. Pfizer is now awaiting decisions in the U.S. and Europe for marstacimab, a potential treatment for hemophilia A and B.
3. The drug posted $1.61 billion in revenue for the quarter, up 9% from the same period a year ago.
4. Pfizer is classified as a member of the S&P 500 healthcare sector and operates within the biotechnology and pharmaceutical industry.

The company is also aiming to cut costs by at least $4 billion by the end of this year, with about 70% of the savings coming from research and development. The company had pulled off a near miracle with its rapid development of a COVID-19 vaccine. Seagen’s therapies are expected to contribute $3.1 billion in sales for Pfizer next year. With a first-line label expansion, though, Padcev sales alone could exceed this figure in 2025. Five years from now, I expect annual contributions from Seagen to equal roughly one-fifth of its purchase price. Rapidly eroding sales of Pfizer’s COVID-19 vaccine, Comirnaty, and Paxlovid, its antiviral COVID-19 treatment, are a big reason Pfizer caught Wall Street by surprise.

The pharma giant also projects adjusted diluted earnings per share (EPS) of between $2.05 and $2.25 in 2024, again including the expected impact of the Seagen acquisition. Pfizer anticipates delivering adjusted diluted EPS of $1.45 to $1.65 in full-year 2023. Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective. Pfizer maintains an aggressive stance in entering the profitable obesity market, despite discontinuing a high-profile weight-loss drug due to severe side effects last year, according to CEO Albert Bourla on Monday.

Pfizer’s earnings top expectations, but stock wavers as some key product sales disappoint

Analysts are looking for Pfizer to move past a period of off-base guidance, and many now believe the company has set conservative expectations for 2024. Tuesday’s results “should be a surprise to no one,” given management’s recent guidance and the efforts to reset expectations for the COVID business, BMO Capital Markets analyst Evan David Seigerman wrote in a note Tuesday. Its respiratory syncytial virus (RSV) vaccine Abrysvo is off to a great start. If we backed out all of Pfizer’s projected COVID sales, its revenue would be in the ballpark of $52 billion next year.

The long-awaited Seagen merger is on

Analysts had expected the shot to bring in $4.99 billion in sales, according to FactSet estimates. To help spur future growth, Pfizer is making a big bet on antibody-drug conjugates with its $43 billion acquisition of Seagen, which closed last month. ADCs are a type graficas de trading of targeted cancer treatment that can deliver chemotherapy agents to cancer cells, aiming to minimize damage to healthy cells. Beyond the COVID business, bright spots included Pfizer’s Vyndaqel family of drugs, which treat a rare but severe cause of heart disease.

With 36 manufacturing facilities, 110 assets in the pipeline, and sales in 185 countries, Pfizer reported $68.53 billion in revenue over the past 12 months. For the first quarter, Pfizer stock analysts forecast earnings of 58 cents per share and $14.79 billion in sales. Pfizer also said its blood thinner Eliquis, which is co-marketed by Bristol Myers Squibb, helped drive that growth. The drug posted $1.61 billion in revenue for the quarter, up 9% from the same period a year ago. Analysts had expected Eliquis to rake in $1.52 billion in sales, according to FactSet.

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It was the first mass producer of the “miracle drug” penicillin in the 1940s and was generating more than a billion dollars in sales by the early 1970s. Pfizer has become one of the biggest pharmaceutical companies in the world, with a market capitalization of $251.3 billion as of Nov. 3, 2021. Still, growth investors will probably find other stocks more attractive than Pfizer. Even factoring out the drag from its COVID products, the company won’t generate jaw-dropping growth.

It can be difficult to predict just what the company’s financials will look like in a year or two. However, even without COVID-19 revenue, Pfizer’s still generating close to $50 billion in sales from its other products. For example, Ibrance and Eliquis combined for just over $3 billion in revenue in the first quarter. Pfizer has several value drivers that don’t appear to be resonating with the broader market right now.

Adjusted earnings numbers often exclude non-cash expenses and can be more reflective of a company’s true earnings power. Pfizer has been accumulating tens of billions in cash thanks to its COVID-19 products over the past year, and that has enabled it to take on some more aggressive growth strategies. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Pfizer stock screens as one of the most undervalued blue chips as a result of the market’s grumpiness. But as the discussion above lays out, this extreme pessimism doesn’t seem to be warranted.

Not all of these moves may pay off for the business, but the acquisition of more assets expands Pfizer’s pipeline and sets the company up for some better growth prospects down the road. It has been a vastly different approach from rival Moderna, and that’s why Pfizer looks like the better long-term buy. However, an obvious problem would be that as concerns relating to COVID-19 subside, demand for vaccines and pills could drop.

To find the best stocks to buy and watch, check out IBD Stock Lists. Shares of Pfizer have a Composite Rating of 27 out of a best-possible 99. The measure weighs a stock’s key growth metrics against all other stocks. Leading stocks tend to have Composite Ratings of 95 or better, according to IBD Digital.

It’s important to note that shares are not forming a chart pattern for investors to watch. A group of shots to protect against pneumococcal pneumonia brought in $1.60 billion in sales for the fourth quarter. Excluding certain items, the company posted earnings per share of 10 cents for the quarter. The company expects to book adjusted earnings of $2.05 to $2.25 per share.