Pfizer (PFE) stock is trading in negative territory Tuesday even after the pharmaceutical giant topped analysts' expectations for its second quarter and raised its full-year outlook.
In the three months ended June 30, Pfizer said its revenue increased 2.1% year-over-year to $13.3 billion, thanks in part to 22% revenue growth in the U.S. to $7.9 billion. Its earnings per share (EPS) declined 10.4% from the year-ago period to 60 cents.
"This was Pfizer's first quarter of topline revenue growth, on a year-over-year basis, since the fourth quarter of 2022 when our COVID revenues peaked," said Pfizer Chief Financial Officer David Denton in a statement. "Importantly, the strong 14% operational revenue growth of our non-COVID products in the second quarter demonstrates our continued focus on commercial execution."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results topped analysts' expectations. Wall Street was anticipating revenue of $13 billion and earnings of 46 cents per share, according to Yahoo Finance.
"Pfizer once again delivered better-than-expected results at both the top and bottom line, wrote Lee Brown, global sector lead for healthcare at Third Bridge, in an emailed statement.
In addition to solid sales of Pfizer's heart disease drugs Vyndaqel and Vyndamax and its blood-clot treatment Eliquis, Brown highlighted Pfizer's cost-saving initiatives, "which are on track to deliver at least $4 billion in net cost savings by the end of this year, as well as recently launched manufacturing optimization program that is targeting cost savings of roughly $1.5 billion by the end of 2027."
Pfizer updates its full-year outlook
"With a successful first half now completed, we believe it is appropriate to update our full year earnings outlook to reflect our strong business performance," Denton said in prepared remarks.
Pfizer now anticipates revenue in the range of $59.5 billion to $62.5 billion and EPS in the range of $2.45 to $2.65 in 2024. This is up from its previous forecast of revenue in the range of $58.5 billion to $61.5 billion and earnings per share in the range of $2.15 to $2.35.
"We are clearly striving to bring about improved performance on both the top-and-bottom lines through focus, execution and delivering on our near-term commercial and financial goals," Denton said. "2024 is clearly a foundation year for Pfizer."
Is PFE stock a buy, sell or hold?
Not only is Pfizer one of Kiplinger's best stocks to buy, but Wall Street is also bullish on the healthcare stock.
According to S&P Global Market Intelligence, the average analyst target price for PFE stock is $32.19, representing an upside of more than 7% to current levels. Additionally, the consensus recommendation is Buy.
Related Content
-
The Most Tax-Friendly State for Retirement in 2025: Here It IsRetirement Tax How do you retire ‘tax-free’? This state doesn’t tax retirement income, has a low median property tax bill, and even offers savings on gas. Are you ready for a move?
-
Plan for Higher Health Care Costs in 2026: Projected Medicare Part B and Part D PremiumsIn 2026, Medicare participants will pay more for their health care. Part B costs are expected to rise more than 10%. Here's what you can do.
-
Avoid Medicare's 'Shadow Tax' With This Financial Expert's IRMAA-Busting TipsYou're cruising along in retirement, and then bam: Your Medicare premiums soar because your income crossed the limit. Take a breath. There could be a solution.
-
Grilling Season and ETFs: There's More Than One Way to Cook Up a PortfolioExchange-traded funds come in a multitude of 'flavors' these days, from passive to active to factor-based. Their flexibility is what makes them so delicious.
-
You Don't Want It, But You Should Plan for It Anyway: An Expert Guide to Long-Term CarePlanning for long-term care is crucial to protect your independence, family and financial stability against unexpected health events and rising care costs not covered by standard insurance.
-
Japan Tariffs: 5 Things That Might Get More Expensive for YouPresident Donald Trump's trade agreement with Japan features a 15% reciprocal tariff for all imported products, which could impact the prices of these items when you go shopping.
-
Five Questions to Help Ensure a Happy, Secure RetirementYou need to drill down to what you really want out of retirement. Then you can get down to the business of crafting a financial plan to make it happen.
-
I'm a Financial Adviser: This Is How You Can Save for Big Goals Even if You Feel Like You're Barely Getting ByLearning good financial habits — building an emergency fund, paying down debt, saving consistently — gives you flexibility, options and a path to security.
-
How to Buy an Annuity Online (Without Regret)You should never be rushed into buying an annuity. But now that they can be sold quickly and easily online, you need to be more alert than ever to pushy salesmanship. Here are four signs you're working online with a professional.
-
Dow Dives 542 Points on Soft Jobs Data: Stock Market TodayThe last day of a busy week ends with the first greater-than-1% move in either direction in more than a month.
