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Pfizer (PFE) to Report Q1 Earnings: What's in the Cards?

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Pfizer ((PFE - Free Report) ) will report first-quarter 2022 results on May 3, before market open. In the last reported quarter, the company beat earnings expectations by 27.06%.

The drug giant’s performance was strong, with the company exceeding earnings expectations in each of the last four quarters. The company has a four-quarter earnings surprise of 19.79%, 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 13.8% this year so far against an increase of 5% for the industry.

Zacks Investment Research
Image Source: Zacks Investment Research

Factors to Note

Key contributors to Pfizer’s sales in the first quarter are likely to have been direct sales and alliance revenues from partner, BioNTech (BNTX - Free Report) for COVID-19 vaccine, Comirnaty and revenues from Pfizer’s oral antiviral pill for COVID, Paxlovid. Sales of Paxlovid are expected to have been significantly higher than $76 million recorded in the fourth quarter, which was the first quarter of its launch. Paxlovid was approved in the United States in December 2021 and has already received emergency or conditional authorization for use in certain populations in approximately 50 countries. Sales of Pfizer and BioNTech’s Comirnaty could be slightly lower than $12.5 million recorded in the fourth quarter of 2021 given the receding impact of the pandemic.

Excluding, Comirnaty and Paxlovid, higher alliance revenues from Pfizer’s key brands, Eliquis and Xtandi, and significant contribution from newer drug Vyndaqel/Vyndamax and higher biosimilar revenues are likely to have contributed to sales growth in the first quarter of 2022.

Sales of some key medicines like Ibrance in the United States and Prevnar 13/Prevenar 13 vaccine both in the United States and international markets declined in the fourth quarter of 2021. It remains to be seen if the sales trends of these products improved in the first quarter.

The Zacks Consensus Estimate for oncology and vaccine products is $3.14 billion and $11.74 billion, respectively.

However, sales of some key drugs like Sutent and Enbrel in international markets are likely to have declined in the first 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.

SG&A costs are expected to have been higher in the first quarter due to increased product-level spending, including Comirnaty and Paxlovid.

Key Development in Q1

Late last month, the FDA authorized a second booster dose of Pfizer’s COVID-19 for older adults and some immunocompromised individuals. The second booster dose of Pfizer and BioNTech’s vaccine can be given to people 50 years of age and older at least four months after they have taken the first booster dose of any authorized or approved COVID-19 vaccine. Additionally, the FDA also authorized a second booster dose of Pfizer and BioNTech’s vaccine for certain immunocompromised individuals 12 years and older.

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 -12.46% as the Zacks Consensus Estimate of $1.66 per share is higher than the Most Accurate Estimate of $1.46 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:

Biogen (BIIB - Free Report) has an Earnings ESP of +0.74% and a Zacks Rank #3.

Biogen’s stock has declined 12.3% this year so far. The company’s earnings beat estimates in each of the last four quarters. The company has a four-quarter earnings surprise of 11.72%, on average. BIIBis scheduled to release its first-quarter 2022 results on May 3.

Moderna (MRNA - Free Report) has an Earnings ESP of +4.93% and a Zacks Rank #3.

Moderna topped earnings estimates in three of the last four quarters. Moderna has a four-quarter earnings surprise of 11.88%, on average. The stock has declined 43.9% this year so far. MRNA is scheduled to report first-quarter results on May 4.

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

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