Pfizer (PFE) stock is trading in negative territory Tuesday even after the pharmaceutical giant topped analysts' expectations for its second quarter and raised its full-year outlook.
In the three months ended June 30, Pfizer said its revenue increased 2.1% year-over-year to $13.3 billion, thanks in part to 22% revenue growth in the U.S. to $7.9 billion. Its earnings per share (EPS) declined 10.4% from the year-ago period to 60 cents.
"This was Pfizer's first quarter of topline revenue growth, on a year-over-year basis, since the fourth quarter of 2022 when our COVID revenues peaked," said Pfizer Chief Financial Officer David Denton in a statement. "Importantly, the strong 14% operational revenue growth of our non-COVID products in the second quarter demonstrates our continued focus on commercial execution."
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The results topped analysts' expectations. Wall Street was anticipating revenue of $13 billion and earnings of 46 cents per share, according to Yahoo Finance.
"Pfizer once again delivered better-than-expected results at both the top and bottom line, wrote Lee Brown, global sector lead for healthcare at Third Bridge, in an emailed statement.
In addition to solid sales of Pfizer's heart disease drugs Vyndaqel and Vyndamax and its blood-clot treatment Eliquis, Brown highlighted Pfizer's cost-saving initiatives, "which are on track to deliver at least $4 billion in net cost savings by the end of this year, as well as recently launched manufacturing optimization program that is targeting cost savings of roughly $1.5 billion by the end of 2027."
Pfizer updates its full-year outlook
"With a successful first half now completed, we believe it is appropriate to update our full year earnings outlook to reflect our strong business performance," Denton said in prepared remarks.
Pfizer now anticipates revenue in the range of $59.5 billion to $62.5 billion and EPS in the range of $2.45 to $2.65 in 2024. This is up from its previous forecast of revenue in the range of $58.5 billion to $61.5 billion and earnings per share in the range of $2.15 to $2.35.
"We are clearly striving to bring about improved performance on both the top-and-bottom lines through focus, execution and delivering on our near-term commercial and financial goals," Denton said. "2024 is clearly a foundation year for Pfizer."
Is PFE stock a buy, sell or hold?
Not only is Pfizer one of Kiplinger's best stocks to buy, but Wall Street is also bullish on the healthcare stock.
According to S&P Global Market Intelligence, the average analyst target price for PFE stock is $32.19, representing an upside of more than 7% to current levels. Additionally, the consensus recommendation is Buy.
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