Earnings per Share: Adjusted at $1.06, beating the expected 62 cents Revenue: $17.7 billion, above the expected $14.95 billion
I’ve been buying Pfizer shares throughout the year, even though the stock has been under pressure from falling COVID vaccine sales and patent expirations. I figured all the negative stuff was already priced in, especially since the stock has dropped 7% in the past three months but is now 10% above its 52-week low. Plus, it offers a 6% dividend yield and a forward P/E ratio of 11, which seemed attractive to me.
Yet even with these earnings beats, the stock is down. Why is that? Any ideas on what could be affecting it?
Kiplinger suggests Pfizer’s good quarter and updated guidance may be too dependent on a few specific products, especially Paxlovid. Longer-term investors might be worried about whether these revenue streams are sustainable. An activist investor recently pointed out that Pfizer’s record with creating blockbuster drugs has not been great, which may also be weighing on sentiment.
@Val
Interesting. I think Paxlovid’s sales are actually holding up well, given that many thought they’d fade out as COVID became less severe. Even though COVID is no longer a pandemic, Paxlovid still seems to be in demand, especially for older people.
@Vale
Paxlovid still has a role, especially for older folks who might need early treatment. COVID isn’t the emergency it was, but it’s still relevant for certain groups.
Micah said: @Vale
Paxlovid still has a role, especially for older folks who might need early treatment. COVID isn’t the emergency it was, but it’s still relevant for certain groups.
Paxlovid is starting to face issues in studies on side effects and effectiveness in the early stages of COVID. Doctors seem to be holding back on prescribing it more widely. Pfizer sticking with it instead of investing in newer treatments might be why the outlook isn’t looking as strong.
Briley said:
It’s the same reason stocks can go up after bad earnings.
Maybe people will recognize the value soon?
Or it could take weeks, even months. Big moves often happen leading into earnings, and after that, investors may take their gains and look for other opportunities.
Briley said:
It’s the same reason stocks can go up after bad earnings.
Maybe people will recognize the value soon?
I think you’re overlooking the big picture. The market is forward-looking and takes into account things like leadership, policy, sector trends, and competitors. Maybe future pressure on drug prices is a factor, or a milder flu season—lots of elements beyond one earnings beat.
