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."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free 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
-
The Most Popular Apps for Retirement Planning in 2025A J.D. Power survey ranks retirement planning apps based on customer service and satisfaction. Does your financial app make the cut?
-
Don't Disinherit Your Grandchildren: The Hidden Risks of Retirement Account Beneficiary FormsStandard retirement account beneficiary forms may not be flexible enough to ensure your money passes to family members according to your wishes. Naming a trust as the contingent beneficiary can help avoid these issues. Here's how.
-
Don't Disinherit Your Grandchildren: The Hidden Risks of Retirement Account Beneficiary Forms
Standard retirement account beneficiary forms may not be flexible enough to ensure your money passes to family members according to your wishes. Naming a trust as the contingent beneficiary can help avoid these issues. Here's how.
-
This Is How Life Insurance Can Fund Your Dreams NowBeyond a death benefit, life insurance can provide significant financial value and flexibility through 'living benefits' while you are still alive, helping with expenses like education, business ventures or retirement.
-
Potential Trouble for Retirees: A Wealth Adviser's Guide to the OBBB's Impact on RetirementWhile some provisions might help, others could push you into a higher tax bracket and raise your costs. Be strategic about Roth conversions, charitable donations, estate tax plans and health care expenditures.
-
One Small Step for Your Money, One Giant Leap for RetirementSaving enough for retirement can sound as daunting as walking on the moon. But what would your future look like if you took one small step toward it this year?
-
This Is What You Really Need to Know About Medicare, From a Financial ExpertHealth care costs are a significant retirement expense, and Medicare offers essential but complex coverage that requires careful planning. Here's how to navigate Medicare's various parts, enrollment periods and income-based costs.
-
I'm a Financial Planner: Could Partial Retirement Be the Right Move for You?Many Americans close to retirement are questioning whether they should take the full leap into retirement or continue to work part-time.
-
From Mortgages to Taxes to Estates: How to Prepare for Falling Interest RatesAs speculation grows that the Federal Reserve will soon start lowering interest rates, now is a good time to review your financial plans for housing, estate, taxes, investing and retirement to make the most of potential changes.
-
This Is How Lottery Winners Build Lasting Legacies, From a Financial ProfessionalWinning a massive lottery jackpot, like the recent $1.4 billion Powerball, requires seeking immediate legal and financial counsel, protecting your identity and winnings and planning your legacy.
