Pfizer’s third-quarter earnings report is due today (November 2, 2021). Considering the previous quarterly report, this guide will forecast the company’s Q3 earnings report. For the second quarter of 2021, Pfizer’s sales increased by 92% to $19 billion, compared to $9.86 billion in the same quarter last year.
For the quarter ending July 4, 2021, operating revenue increased by 86%, or $8.5 billion.Revenues grew to $11.1 billion after subtracting the Covid-19 vaccine, BNT162b2, showing a 10% rise in operational growth. The vaccine was co-developed by Pfizer and BioNTech [1].
As governments strive to ramp up efforts to battle the current COVID-19 pandemic, Pfizer’s COVID-19 vaccine has been disseminated throughout the world. More than 1 billion doses of the vaccine have already been administered globally, according to the company. Pfizer highlighted that this operational increase in Q2 2021, excluding the Covid-19 vaccine, builds on a comparable business’s operational growth of 6% the previous year.
In the second quarter of 2021, reported diluted earnings per share (EPS) was $0.98, up 58% from $0.62 the previous quarter, while adjusted diluted EPS was $1.07, up from $0.62 in the second quarter of 2020. Vaccines revenue increased to $9.2 billion in Q2 2021, up from $1.2 billion the previous quarter [1]. Pfizer lifted its sales outlook for the full year 2021 from $70.5 billion to $72.5 billion while adjusted diluted EPS climbed to $3.95 to $4.05.
The BNT162b2 vaccination alone produced $7.8 billion in direct sales and alliance revenues in the second quarter of this year. In addition, revenues in the Oncology and Rare Disease sectors climbed 19% to $3.14 billion and 32% to $895 million, respectively. The Inflammation and Immunology segment’s revenue fell by 9% to $1.04 billion in the third quarter. Meanwhile, the Internal Medicine and Hospital sectors generated $2.4 billion and $2.25 billion in sales [1].
Based on supply agreements signed by the firm between April and July of this year, sales estimates for BNT162b2 for the year have risen to over $33.5 billion. The income includes the 2.1 billion vaccination doses that will be delivered this year.
It’s worth noting that the drug giant has had a mixed track record, with earnings beating estimates in three of the previous four quarters while missing in one. On average, the company’s four-quarter profit surprise is 5.55 % [2].
PFIZER Stock Analysis
After reaching an all-time high on August 18, Pfizer stock has been sliding down. On October 6, the stock reached its recent low at 41, the level previously seen in July this year. However, it did make a slight recovery afterward and is now trading at 43.74.
On the daily chart, the price is slightly above the 100-day MA, and the MACD is just above its neutral level, suggesting a neutral trend.The next resistance for the stock lies near 44, which it did manage to cross at the end of September. If the price breaks this level, it could go towards the next resistance at 50, close to its all-time high.
On the other hand, the stock’s support lies near 40. If the price breaches this level, it could further dip towards the 37 mark [5].
- https://investors.pfizer.com/financials/quarterly-reports/default.aspx
- https://finance.yahoo.com/news/pfizer-pfe-keep-earnings-streak-132801650.html
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Adnan Rehman
Market Analyst – Regional Market Analyst
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