Why Pfizer shares are lower after a beat-and-raise quarter

Pfizer (PFEStocks are lower in Tuesday’s session even after the pharmaceutical giant beat third-quarter expectations and raised its full-year outlook.

In the three months ending September 29Pfizer’s revenue rose 31.3% year over year to $17.7 billion. Additionally, the company rose to net income of $1.06 per share, versus a loss of 17 cents per share in the year-ago period.

“We delivered another strong quarter of results as we continued our disciplined execution, strengthened our commercial position and advanced our pipeline,” said Dr. Pfizer CEO Albert Bourla said in a statement. “Our performance during the first three quarters of the year is the result of our focus on our key strategic priorities.”

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The results far exceeded analysts’ expectations. Wall Street expected revenue of $15 billion and earnings of 62 cents per share Yahoo Finance.

“The focus on execution excellence is beginning to deliver results with market share gains in the U.S. and internationally, as well as robust revenue and earnings per share growth,” Bourla said. in prepared remarks. “As a result, we are increasing our full-year 2024 total revenue guidance and adjusted diluted earnings per share.”

Pfizer now expects revenue between $61 billion and $64 billion and earnings per share between $2.75 and $2.95. This is higher than the previous forecast of revenue of $59.5 billion to $62.5 billion and earnings per share between $2.45 and $2.65.

“I am confident that we will meet our financial commitments in 2024 and that we are well positioned to continue to advance scientific breakthroughs in the coming years that are meaningful for our patients and our business, and to create long-term shareholder value. Bourla said.

Despite the strong results, some media outlets are pointing to the outsized boost from Pfizer’s Covid-19 treatments for quarterly results and raising expectations. “Investors do not have much confidence in the long-term value of the company’s Covid-19 business, and those results are unlikely to inspire much optimism among investors,” as Barron explains.

Should Pfizer Stocks Be Buy, Sell, or Hold?

Pfizer shares are up nearly 5% so far this year on a total return basis (price change plus dividends), lagging the S&P 500’s 23% gain. But many on Wall Street think PFE is one of the most important is best stocks to buyy at the current level.

According to S&P global market informationthe average analyst price for the healthcare stock is $33.20, which represents an implied upside of more than 16% from current levels. Additionally, the consensus recommendation is Buy.