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Pfizer (PFE) to Report Q2 Earnings: What's in the Cards?

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Pfizer (PFE - Free Report) will report second-quarter 2022 results on Jul 28, before market open. In the last reported quarter, the company missed earnings expectations by 2.41%.

The drug giant’s performance has been mixed with the company exceeding earnings expectations in three of the last four quarters while missing in one. The company has a four-quarter earnings surprise of 14.76% on average.

Pfizer Inc. Price and EPS Surprise

Pfizer Inc. Price and EPS Surprise

 

 

 

 

 

 

 

 

Pfizer Inc. price-eps-surprise | Pfizer Inc. Quote

Pfizer’s stock has declined 12.3% this year so far against an increase of 2.8% for the industry.

Zacks Investment Research
Image Source: Zacks Investment Research

Factors to Note

Key contributors to Pfizer’s sales in the second quarter will be direct sales and alliance revenues from partner BioNTech (BNTX - Free Report) for the COVID-19 vaccine, Comirnaty and Pfizer’s oral antiviral pill for COVID, Paxlovid.

Excluding, alliance revenues from BioNTech for Comirnaty and revenues from Paxlovid, higher alliance revenues from Pfizer’s key brand, Eliquis, higher sales of Prevnar vaccines and Inlyta cancer drug, and significant contribution from newer drug Vyndaqel/Vyndamax and higher biosimilar revenues are likely to have contributed to sales growth in the second quarter of 2022.

The Zacks Consensus Estimate for Prevnar, Inlyta and Vyndaqel/Vyndamax are $1.24 billion, $309 million and $663 million, respectively. The Zacks Consensus Estimate for alliance revenues from Eliquis is $1.61 billion.

However, sales of a key medicine, Ibrance in the United States are likely to have declined due to increased competitive pressure and an increase in the proportion of patients using Pfizer’s Patient Assistance Program (which provides Ibrance free of charge to certain low-income patients) due to COVID-related economic hardships in the United States. Ibrance revenues are likely to have increased in international markets. The Zacks Consensus Estimate for Ibrance is $1.43 billion.

The Zacks Consensus Estimate for oncology and vaccine products is $3.38 billion and $9.93 billion, respectively.

Sales of some key drugs like Xeljanz, Sutent and Enbrel in international markets are likely to have declined in the second quarter, continuing the trend of the past few quarters. While Sutent sales are expected to have been hurt due to the loss of exclusivity, sales of Enbrel in key European markets and Japan are likely to have been hurt due to biosimilar competition. Lower prescription volumes globally, with doctors’ prescribing patterns shifting away from JAK inhibitors following label warnings, are likely to have hurt Xeljanz’s sales in the second quarter.

The Zacks Consensus Estimate for Xeljanz, Sutent and Enbrel is pegged at $526 million, $108 million and $239 million, respectively.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Pfizer time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.

Earnings ESP: Pfizer’s Earnings ESP is -5.09% as the Zacks Consensus Estimate of $1.83 per share is higher than the Most Accurate Estimate of $1.74 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Pfizer has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are some large drug/biotech stocks that have the right combination of elements to beat on earnings this time around:

AstraZeneca (AZN - Free Report) has an Earnings ESP of +1.38% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

AstraZeneca’s stock has risen 13.5% this year so far. AstraZeneca topped earnings estimates in two of the last four quarters. AZN has a four-quarter earnings surprise of 1.32%, on average. AstraZeneca is scheduled to release its second-quarter 2022 results on Jul 29.

Bayer (BAYRY - Free Report) has an Earnings ESP of +5.26% and a Zacks Rank #3.

Bayer’s performance has been pretty impressive, with the company exceeding earnings expectations in each of the trailing four quarters. It delivered a four-quarter earnings surprise of 17.71%, on average.

Bayer is scheduled to release its second-quarter 2022 results on Aug 4. The stock is up 11.1% this year so far.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


 

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