Pfizer (PFE) stock is lower in Tuesday's session even after the pharmaceutical giant beat top- and bottom-line expectations for its third quarter and raised its full-year outlook.
In the three months ended September 29, Pfizer's revenue increased 31.3% year over year to $17.7 billion. What's more, the company swung to a net profit of $1.06 per share from a loss of 17 cents per share in the year-ago period.
"We delivered another strong quarter of results as we continued to execute with discipline, strengthen our commercial position and advance our pipeline," said Pfizer CEO Dr. Albert Bourla in a statement. "Our performance through the first three quarters of the year is the result of our focus on our most important strategic priorities."
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 handily beat analysts' expectations. Wall Street was anticipating revenue of $15 billion and earnings of 62 cents per share, according to Yahoo Finance.
"The focus on execution excellence is starting to deliver results with market share gains in the U.S. and International, as well as robust growth in revenues and earnings per share," Bourla said in prepared remarks. "As a result, we are raising guidance ranges for our full-year 2024 total revenue and adjusted diluted earnings per share."
Pfizer now anticipates revenue in the range of $61 billion to $64 billion and earnings per share to arrive between $2.75 to $2.95. This is higher than its previous forecast for revenue of $59.5 billion to $62.5 billion and earnings per share to land between $2.45 to $2.65.
"I'm confident that we will deliver on our financial commitments in 2024 and that we are well positioned to continue advancing scientific breakthroughs meaningful to our patients and our company, as well as creating long-term shareholder value, in the years to come," Bourla said.
Despite the strong results, some media outlets are pointing to the outsized boost from Pfizer's Covid-19 treatments on its quarterly results and guidance raise. "Investors don't have much faith in the long-term value of the company's Covid-19 business, and those results are unlikely to inspire much investor optimism," as Barron's explains.
Is Pfizer stock a buy, sell or hold?
Pfizer shares are up nearly 5% for the year to date on a total return basis (price change plus dividends), lagging the S&P 500's 23% gain. But several on Wall Street think PFE is one of the best stocks to buy at current levels.
According to S&P Global Market Intelligence, the average analyst target price for the healthcare stock is $33.20, representing implied upside of more than 16% to current levels. Additionally, the consensus recommendation is Buy.
Related Content
-
Rising AI Demand Stokes Undersea InvestmentsThe Kiplinger Letter As demand soars for AI, there’s a need to transport huge amounts of data across oceans. Tech giants have big plans for new submarine cables, including the longest ever.
-
Return to Your Home Country to Retire: Repatriation RetirementThey came to the U.S. to live and work, but they want to retire in the old country. Here's how to juggle the move back home.
-
How Much Does Being Rich Matter in Retirement?After a certain point, having more money in retirement won't make you any happier, new research shows. Instead, physical health, a sense of purpose, and a minimal amount of non-mortgage debt are more relevant.
-
The Three Biggest Fears Keeping Retirees Up at NightHere are the steps you can take to put those fears to rest and retire with confidence so you can relax and enjoy the life you've planned.
-
What Can a Donor-Advised Fund Do for You? (A Lot)DAFs and private foundations go about helping charities (and those who donate) in different ways. Each comes with its own benefits and restrictions to navigate.
-
Estate Planning When You Have International AssetsEstate planning gets tricky when you have assets and/or beneficiaries outside the U.S. To avoid costly inheritance mistakes, it pays to understand the basics.
-
Microsoft Stock: Innovation Spurs Its 100,000% ReturnMicrosoft's ability to recognize the "next big thing" has allowed sales – and its share price – to grow exponentially over the years.
-
Three Essential Estate Planning Steps to Protect Your Nest EggAfter dedicating years to building your wealth and securing your future, make sure your assets are protected and your loved ones are provided for in the future.
-
Is Chasing the American Dream Ruining Your Financial Life?Too many people focus on visible affluence as a marker of success. Here's how to avoid succumbing to the pressure and driving yourself into debt.
-
Stock Market Today: Dow Sinks 715 Points as Inflation Unrest GrowsInflation worries are showing up in both hard and soft data.
