Pfizer is set to report its Q2 2024 results with revenue expected to be $12.95 billion and earnings of $0.44 per share, although lower than the consensus estimates. The company is anticipated to see higher sales driven by Eliquis and Prevnar, but increased competition for some drugs may lead to the top-line falling short of analyst expectations. Despite the possibility of a downbeat Q2, the stock is considered appropriately priced at the current levels of around $30. Pfizer’s performance trends will play a key role in driving its results, as outlined in the company’s Earnings Preview.
Pfizer’s stock has faced a decline of 15% over the last three years, underperforming the S&P 500. The company saw inconsistent returns over this period, with varying performance in different years. Given the challenging environment with high oil prices and elevated interest rates, questions arise regarding Pfizer’s ability to recover and outperform the market in the coming months. From a valuation perspective, Pfizer appears fully priced at $29 per share, trading at 13x forward expected earnings for 2024, slightly below its historical average of 15x.
In the previous quarter, Pfizer’s revenue was down 19% year-over-year, mainly due to lower sales of its Covid-19 products. Excluding these products, the sales growth was positive, driven by Vyndaqel and Abrysvo. Eliquis and Prevnar also saw growth in sales, though the adjusted net margin decreased due to higher R&D expenses. Earnings for the quarter stood at $0.82 per share on an adjusted basis, compared to $1.23 in the prior-year quarter.
For the latest quarter, Pfizer is expected to continue seeing market share gains for Vyndaqel and Abrysvo, along with higher sales for Prevnar and Eliquis. Covid-19 product sales are also anticipated to be favorable compared to the previous year. The company has provided guidance for 2024 revenue and adjusted earnings, which are expected to show year-over-year growth but may not meet street estimates. Despite being fully valued, comparing Pfizer to its peers on important metrics will provide further insights into the company’s performance relative to others in the industry.
Overall, Pfizer’s upcoming results will be closely watched, with a focus on revenue growth and earnings performance. The company’s ability to navigate competition in the pharmaceutical market and adjust to changing macroeconomic conditions will be key factors in determining its future stock performance. Investors will be looking for any signs of a recovery in Pfizer’s stock and its ability to outperform the market in the coming months.
