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Pfizer (PFE) to Report Q3 Earnings: What's in the Cards?
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Pfizer (PFE - Free Report) will report third-quarter 2022 results on Nov 1, before market open. In the last reported quarter, the company beat earnings expectations by 16.57%.
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 16.32% on average.
Pfizer’s stock has declined 22.8% this year so far against an increase of 0.1% for the industry.
Image Source: Zacks Investment Research
Factors to Note
Direct sales and alliance revenues from partner BioNTech (BNTX - Free Report) for COVID-19 vaccine, Comirnaty and Pfizer’s oral antiviral pill for COVID, Paxlovid are expected to be have been the key contributors to Pfizer’s sales in the third quarter.
Regarding Pfizer/BioNTech’s Comirnaty, strong growth in international markets is likely to have made up for the slower pace of deliveries in the United States, like the previous quarter. Paxlovid is expected to have been a greater contributor to the top line than Comirnaty, backed by launches in several countries in 2022. Paxlovid’s utilization is expected to have increased in the third quarter due to a rise in BA.4/5 infections and resultant increases in hospitalizations and deaths.
Our estimate for direct sales and alliance revenues from Comirnaty is $2.74 billion, while that for Paxlovid is $8.0 billion.
Excluding Comirnaty and Paxlovid, higher alliance revenues from Pfizer’s key brand, Eliquis, higher sales of the Prevnar family of vaccines and drugs like Vyndaqel/Vyndamax and higher biosimilar revenues are likely to have contributed to sales growth in the third quarter of 2022.
The Zacks Consensus Estimate for Prevnar and Vyndaqel/Vyndamax is $1.84 billion and $589 billion, respectively, while our estimates are $1.52 billion and $640.5 billion, respectively.
However, sales of a key medicine, Ibrance in the United States is 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). The Zacks Consensus Estimate for Ibrance is $1.41 billion, while our estimate is $1.43 billion.
The Zacks Consensus Estimate for oncology and vaccine products is $3.18 billion and $4.68 billion, respectively while our estimates are $3.40 billion and $4.36 billion, respectively.
However, sales of some key drugs like Xeljanz, Sutent and Enbrel in international markets are likely to have declined in the third 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 as doctors’ prescribing patterns shift away from JAK inhibitors following label warnings are likely to have hurt Xeljanz’ sales in the third quarter.
The Zacks Consensus Estimate for Xeljanz and Enbrel is pegged at $518 million and $223 million, respectively while our estimates are $611 million and $230 million, respectively.
In the quarter, Pfizer acquired Global Blood Therapeutics for a total enterprise value of approximately $5.4 billion, or $68.50 per share, in cash. The acquisition strengthens Pfizer’s position in rare hematology by adding Global Blood's only marketed drug, Oxbryta, which is approved for treating SCD in the United States, Europe and some other countries. The acquisition closed last week. Management may discuss integration plans on the third-quarter conference call.
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 -1.32% as the Zacks Consensus Estimate of $1.47 per share is higher than the Most Accurate Estimate of $1.45 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some biotech stocks that have the right combination of elements to beat on earnings this time around:
Blueprint Medicines Corporation (BPMC - Free Report) has an Earnings ESP of +1.49% and a Zacks Rank #3.
Blueprint Medicines missed earnings expectations in three of the trailing four quarters while delivering in-line results in one. It delivered a four-quarter negative earnings surprise of 19.49%, on average.
Blueprint Medicines is scheduled to release its third-quarter 2022 results on Nov 1. The stock is down 52.4% this year so far.
Editas Medicine (EDIT - Free Report) has an Earnings ESP of +3.47% and a Zacks Rank #2.
Editas’ stock has declined 56.2% in the year so far. EDIT beat earnings expectations in each of the trailing four quarters, the average surprise being 17.82%.
Image: Bigstock
Pfizer (PFE) to Report Q3 Earnings: What's in the Cards?
Pfizer (PFE - Free Report) will report third-quarter 2022 results on Nov 1, before market open. In the last reported quarter, the company beat earnings expectations by 16.57%.
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 16.32% on average.
Pfizer Inc. Price and EPS Surprise
Pfizer Inc. price-eps-surprise | Pfizer Inc. Quote
Pfizer’s stock has declined 22.8% this year so far against an increase of 0.1% for the industry.
Image Source: Zacks Investment Research
Factors to Note
Direct sales and alliance revenues from partner BioNTech (BNTX - Free Report) for COVID-19 vaccine, Comirnaty and Pfizer’s oral antiviral pill for COVID, Paxlovid are expected to be have been the key contributors to Pfizer’s sales in the third quarter.
Regarding Pfizer/BioNTech’s Comirnaty, strong growth in international markets is likely to have made up for the slower pace of deliveries in the United States, like the previous quarter. Paxlovid is expected to have been a greater contributor to the top line than Comirnaty, backed by launches in several countries in 2022. Paxlovid’s utilization is expected to have increased in the third quarter due to a rise in BA.4/5 infections and resultant increases in hospitalizations and deaths.
Our estimate for direct sales and alliance revenues from Comirnaty is $2.74 billion, while that for Paxlovid is $8.0 billion.
Excluding Comirnaty and Paxlovid, higher alliance revenues from Pfizer’s key brand, Eliquis, higher sales of the Prevnar family of vaccines and drugs like Vyndaqel/Vyndamax and higher biosimilar revenues are likely to have contributed to sales growth in the third quarter of 2022.
The Zacks Consensus Estimate for Prevnar and Vyndaqel/Vyndamax is $1.84 billion and $589 billion, respectively, while our estimates are $1.52 billion and $640.5 billion, respectively.
However, sales of a key medicine, Ibrance in the United States is 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). The Zacks Consensus Estimate for Ibrance is $1.41 billion, while our estimate is $1.43 billion.
The Zacks Consensus Estimate for oncology and vaccine products is $3.18 billion and $4.68 billion, respectively while our estimates are $3.40 billion and $4.36 billion, respectively.
However, sales of some key drugs like Xeljanz, Sutent and Enbrel in international markets are likely to have declined in the third 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 as doctors’ prescribing patterns shift away from JAK inhibitors following label warnings are likely to have hurt Xeljanz’ sales in the third quarter.
The Zacks Consensus Estimate for Xeljanz and Enbrel is pegged at $518 million and $223 million, respectively while our estimates are $611 million and $230 million, respectively.
In the quarter, Pfizer acquired Global Blood Therapeutics for a total enterprise value of approximately $5.4 billion, or $68.50 per share, in cash. The acquisition strengthens Pfizer’s position in rare hematology by adding Global Blood's only marketed drug, Oxbryta, which is approved for treating SCD in the United States, Europe and some other countries. The acquisition closed last week. Management may discuss integration plans on the third-quarter conference call.
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 -1.32% as the Zacks Consensus Estimate of $1.47 per share is higher than the Most Accurate Estimate of $1.45 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 biotech stocks that have the right combination of elements to beat on earnings this time around:
Blueprint Medicines Corporation (BPMC - Free Report) has an Earnings ESP of +1.49% and a Zacks Rank #3.
Blueprint Medicines missed earnings expectations in three of the trailing four quarters while delivering in-line results in one. It delivered a four-quarter negative earnings surprise of 19.49%, on average.
Blueprint Medicines is scheduled to release its third-quarter 2022 results on Nov 1. The stock is down 52.4% this year so far.
Editas Medicine (EDIT - Free Report) has an Earnings ESP of +3.47% and a Zacks Rank #2.
Editas’ stock has declined 56.2% in the year so far. EDIT beat earnings expectations in each of the trailing four quarters, the average surprise being 17.82%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.