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What's in the Cards for Pfizer (PFE) This Earnings Season?
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Pfizer, Inc. (PFE - Free Report) will report first-quarter 2020 results on Apr 28, before market open. In the last reported quarter, the company delivered a negative earnings surprise of 3.51%.
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 deliered a four-quarter positive earnings surprise of 7.46%, on average.
Pfizer’s stock has declined 7.5% this year so far compared with a decrease of 3.1% for the industry.
Factors to Consider
Pfizer’s revenues in the first quarter are expected to have declined year over year due to lost revenue contribution from The Consumer Healthcare (CHC) unit. The CHC unit, an over-the-counter medicines business, was merged with Glaxo’s (GSK - Free Report) unit in July 2019 to form a new joint venture (JV).
Higher sales of Pfizer’s key brands, Eliquis, Ibrance, Inlyta, Xtandi in the Biopharma segment, and higher biosimilar revenues are likely to have made up for lower sales in the Upjohn group.
Within the Biopharma group, the Zacks Consensus Estimate for oncology and vaccine products is $2.49 billion and $1.64 billion, respectively. The consensus estimate for Upjohn group sales is $2.06 billion.
However, sales of some key products like Prevnar 13/Prevenar 13 vaccine in the United States and Enbrel in international declined in the last three quarters. Things are unlikely to have improved time around.
In the Upjohn segment, sales of key drug Lyrica are likely to have declined due to multi-source generic competition that began in July 2019. Viagra sales are likely to have declined due to generic competition that began in December 2017.
Pfizer’s sterile injectables portfolio showed a recovery in the second half of 2019 as Pfizer’s manufacturing recovery efforts started taking shape. The portfolio had been seeing lower revenues before that due to persistent legacy Hospira product shortages in the United States. We will have to wait for the results to see if sales improved this time around as well.
Importantly, in July 2019, Pfizer had announced a definitive agreement stating that it will spin off its Upjohn unit and combine it with generic drugmaker Mylan in a Reverse Morris Trust transaction to create a generic pharmaceutical company to be called Viatris. In March, Pfizer announced a delay in closing of the pending merger due to the coronavirus pandemic to the second half of 2020 versus the prior expectation of mid-2020. An update is expected on the conference call.
Importantly, on the first-quarter earnings call, investors will likely await an updated business outlook for 2020 to include the impact of coronavirus. There is a concern about supply chain disruptions, caused by the outbreak, hurting drug/biotech companies’ first-half earnings
With half of the world under lockdown, a delay is expected in completion of clinical studies, which could further delay drug approvals and their launch. Investors will look for any such updates from Pfizer.
Key Recent Development
In March, Pfizer announced that it will co-develop Germany-based biotech BioNTech’s mRNA-based vaccine candidate BNT162 to prevent COVID-19. Earlier this week, German regulatory authority granted approval to the companies to begin a phase I/II clinical study in Germany. Four vaccine candidates, each representing different mRNA formats and target antigens, are expected to enter clinical studies in Germany. The companies will jointly conduct clinical studies on their COVID-19 vaccine candidate also in the United States upon getting regulatory approvals. Pfizer earlier said the two have potential to supply millions of vaccine doses by the end of 2020 if they receive the necessary regulatory approvals. Thereafter, they can rapidly scale up capacity to produce hundreds of millions of doses in 2021.
Meanwhile, Pfizer is also working to develop an investigational antiviral compound to treat SARS-CoV-2. It has identified antiviral compounds that showed activity against SARS-CoV-2 in preclinical screening. The company plans to start a potential clinical study of the lead molecule in the third quarter of 2020, 3-4 months earlier than expected.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Pfizer this 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: Its Earnings ESP is 0.00% as the Most Accurate Estimate as well as the Zacks Consensus Estimate is pegged at 71 cents 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.
Stocks to Consider
Here are some large drug/biotech stocks that have the right combination of elements to beat on earnings this time around:
Glaxo has an Earnings ESP of +3.19% and a Zacks Rank #3. The company is scheduled to release results on Apr 29.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
What's in the Cards for Pfizer (PFE) This Earnings Season?
Pfizer, Inc. (PFE - Free Report) will report first-quarter 2020 results on Apr 28, before market open. In the last reported quarter, the company delivered a negative earnings surprise of 3.51%.
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 deliered a four-quarter positive earnings surprise of 7.46%, on average.
Pfizer Inc. Price and EPS Surprise
Pfizer Inc. price-eps-surprise | Pfizer Inc. Quote
Pfizer’s stock has declined 7.5% this year so far compared with a decrease of 3.1% for the industry.
Factors to Consider
Pfizer’s revenues in the first quarter are expected to have declined year over year due to lost revenue contribution from The Consumer Healthcare (CHC) unit. The CHC unit, an over-the-counter medicines business, was merged with Glaxo’s (GSK - Free Report) unit in July 2019 to form a new joint venture (JV).
Higher sales of Pfizer’s key brands, Eliquis, Ibrance, Inlyta, Xtandi in the Biopharma segment, and higher biosimilar revenues are likely to have made up for lower sales in the Upjohn group.
Within the Biopharma group, the Zacks Consensus Estimate for oncology and vaccine products is $2.49 billion and $1.64 billion, respectively. The consensus estimate for Upjohn group sales is $2.06 billion.
However, sales of some key products like Prevnar 13/Prevenar 13 vaccine in the United States and Enbrel in international declined in the last three quarters. Things are unlikely to have improved time around.
In the Upjohn segment, sales of key drug Lyrica are likely to have declined due to multi-source generic competition that began in July 2019. Viagra sales are likely to have declined due to generic competition that began in December 2017.
Pfizer’s sterile injectables portfolio showed a recovery in the second half of 2019 as Pfizer’s manufacturing recovery efforts started taking shape. The portfolio had been seeing lower revenues before that due to persistent legacy Hospira product shortages in the United States. We will have to wait for the results to see if sales improved this time around as well.
Importantly, in July 2019, Pfizer had announced a definitive agreement stating that it will spin off its Upjohn unit and combine it with generic drugmaker Mylan in a Reverse Morris Trust transaction to create a generic pharmaceutical company to be called Viatris. In March, Pfizer announced a delay in closing of the pending merger due to the coronavirus pandemic to the second half of 2020 versus the prior expectation of mid-2020. An update is expected on the conference call.
Importantly, on the first-quarter earnings call, investors will likely await an updated business outlook for 2020 to include the impact of coronavirus. There is a concern about supply chain disruptions, caused by the outbreak, hurting drug/biotech companies’ first-half earnings
With half of the world under lockdown, a delay is expected in completion of clinical studies, which could further delay drug approvals and their launch. Investors will look for any such updates from Pfizer.
Key Recent Development
In March, Pfizer announced that it will co-develop Germany-based biotech BioNTech’s mRNA-based vaccine candidate BNT162 to prevent COVID-19. Earlier this week, German regulatory authority granted approval to the companies to begin a phase I/II clinical study in Germany. Four vaccine candidates, each representing different mRNA formats and target antigens, are expected to enter clinical studies in Germany. The companies will jointly conduct clinical studies on their COVID-19 vaccine candidate also in the United States upon getting regulatory approvals. Pfizer earlier said the two have potential to supply millions of vaccine doses by the end of 2020 if they receive the necessary regulatory approvals. Thereafter, they can rapidly scale up capacity to produce hundreds of millions of doses in 2021.
Meanwhile, Pfizer is also working to develop an investigational antiviral compound to treat SARS-CoV-2. It has identified antiviral compounds that showed activity against SARS-CoV-2 in preclinical screening. The company plans to start a potential clinical study of the lead molecule in the third quarter of 2020, 3-4 months earlier than expected.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Pfizer this 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: Its Earnings ESP is 0.00% as the Most Accurate Estimate as well as the Zacks Consensus Estimate is pegged at 71 cents 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.
Stocks to Consider
Here are some large drug/biotech stocks that have the right combination of elements to beat on earnings this time around:
Alexion Pharmaceuticals has an Earnings ESP of +0.83% and a Zacks Rank #2. The company is scheduled to release results on May 6.You can see the complete list of today’s Zacks #1 Rank stocks here.
Glaxo has an Earnings ESP of +3.19% and a Zacks Rank #3. The company is scheduled to release results on Apr 29.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>