Pfizer is set to report its Q2 2024 results, with revenue expected to be $12.95 billion and earnings of $0.44 per share. Despite an expected increase in sales of drugs like Eliquis and Prevnar, competition may impact Pfizer’s top-line growth. The stock is currently trading at around $30, reflecting a decline of 15% from early 2021. While Pfizer has underperformed the S&P 500 in recent years, the Trefis High Quality Portfolio has consistently outperformed the benchmark index.
The uncertain macroeconomic environment, including high oil prices and elevated interest rates, poses a challenge for Pfizer’s stock performance. The company’s valuation currently aligns with its market price, trading at 13x forward expected earnings in 2024. Pfizer’s revenue in Q1 fell 19% year-over-year, driven by lower sales of Covid-19 products. Despite this, sales growth, excluding Covid-19 products, was 11%, with strong performance from drugs like Vyndaqel and Abrysvo.
In the latest quarter, Pfizer is expected to see market share gains for Vyndaqel and Abrysvo, as well as higher sales of Prevnar and Eliquis. Covid-19 product sales are also expected to be favorable compared to the previous year. Pfizer’s full-year revenue is forecasted to fall between $58.5 billion and $61.5 billion, with adjusted earnings in the range of $2.15 to $2.35 per share. While the company is expected to report year-over-year sales growth, it may not meet analysts’ expectations.
Overall, while Pfizer’s stock appears fully valued, it is important to consider how the company’s peers fare on important metrics. Comparisons with industry competitors can provide valuable insights for investors. The company’s performance in the coming quarters will be closely watched, especially in light of the challenging macroeconomic environment. Stay tuned for Pfizer’s Q2 2024 earnings report on July 30 to see how the pharmaceutical giant navigates these headwinds and opportunities.
