Pfizer Inc. is an American multinational pharmaceutical corporation headquartered in New York City. It is one of the world’s largest pharmaceutical companies. It is listed on the New York Stock Exchange, and its shares have been a component of the Dow Jones Industrial Average since 2004.
Pfizer’s report on Q2
Pfizer reported second-quarter adjusted earnings of 78 cents a share on $11.8 billion in sales early Tuesday that handily topped Wall Street. PFE stock rose, also helped by positive coronavirus vaccine news.
Shares of Pfizer rose Tuesday after the pharmaceutical giant reported better-than-expected second-quarter earnings and raised its outlook for 2020, despite a 32% drop in profit as demand fell for some of its drugs during the coronavirus pandemic.
The company reported adjusted earnings of 78 cents per share during the three months ended June 30, higher than the 66 cents per share projected by analysts surveyed by Refinitiv. Revenue fell 11% to $11.8 billion from $13.26 billion during the same quarter last year, but Wall Street saw it as good news since it was more than the $11.5 billion analysts expected.
What’s happening with the competitors?
The results come after Pfizer and BioNTech SE BNTX, 0.28% said late Monday that a late-stage trial of its COVID-19 vaccine candidate has started. Pfizer reported net income that fell to $3.43 billion, or 61 cents a share, from $5.05 billion, or 89 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share fell to 78 cents form 80 cents but beat the FactSet consensus of 67 cents.
Revenue declined 11% to $11.80 billion but was above the FactSet consensus of $11.58 billion. Biopharma revenue rose 4% to $9.80 billion while Upjohn revenue dropped 32% to $2.01 billion.
For 2020, the company raised its guidance ranges for adjusted EPS to $2.85 to $2.95 from $2.82 to $2.92 and for revenue to $48.6 billion to $50.6 billion from $48.5 billion to $50.5 billion. The stock has slipped 4.2% year to date through Monday, while the Dow Jones Industrial Average DJIA, -0.32% has declined 6.9%.
CFO of the company Pfizer speaks
For the year, Pfizer slightly raised guidance. It predicts earnings of $2.85-$2.95 a share on revenue of $48.6 billion to $50.6 billion. The company said that does not include any revenue for any potential coronavirus vaccine. Analysts project adjusted earnings of $2.55 a share on $48.5 billion in sales.
“While our near-term outlook has greater macroeconomic uncertainty than usual due to Covid-19, we are confident that the long-term outlook for our businesses remains solid,” Pfizer Chief Financial Officer Frank D’Amelio said in the earnings release.
Shares of Pfizer were up 3.4% in intraday trading.
Pfizer said the coronavirus shaved about $500 million, or 4%, off its second-quarter revenue as more people worked from home and got fewer new prescriptions and vaccinations. Revenue from its Biopharma unit rose 4% to $9.8 billion while revenue from Upjohn, the business that will be combined with Mylan, dropped 32% to $2.01 billion. The strength in its biopharma unit was mostly driven by the demand for breast cancer drug Ibrance and its blood thinner treatment, the company said.
“We remain fully committed to confronting the public health challenge posed by the COVID-19 pandemic by collaborating with industry partners and academic institutions to develop potential approaches to prevent and treat COVID-19,” Pfizer CEO Albert Bourla said in a release. “Our researchers and scientists have made important progress toward developing an effective vaccine though significant additional work remains.”
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