Pfizer share price gains on quarterly results and outlook
In this article we review the Pfizer results and how the share price has reacted to the news.
Pfizer Inc. quarterly results
Pfizer Inc., the research-based biopharmaceutical company has released results for the fiscal quarter ending September 2022, a summary of which is as follows:
Adjusted earnings per share (EPS) of $1.78 for the quarter, consensus estimates from Refinitiv data had expected adjusted EPS of $1.39
Revenue declined by 6% to $22.64 billion from a year ago, although estimates from Refinitiv data had expected revenue of $21.04 billion.
Pfizer Inc's reported EPS for the quarter was $1.51.
Net income of $8.61 billion was recorded over the reporting period
Group results were ahead of consensus helping the share price gain roughly half a percent on the release thereof. Primary care, boosted by covid therapeutics made up 70% of the total revenue figure. Adding to a bit more positive sentiment around the stock and the sector was news that Pfizer Inc had increased its annual sales forecast of its COVID-19 vaccines by $2 billion on demand for boosters.
How to trade Pfizer shares
As of the 2nd of November 2022, a Refinitiv poll of 23 brokers and analysts suggest the stock to be a ‘hold’ to ‘buy’ at current levels, with no sell recommendations on the company.
The long-term price target mean of $55 suggests the share price of Pfizer to currently be trading at a 15% discount to its assumed fair value.
Most IG clients (94%) with open positions on the stock, as of the 2nd of November 2022, expect the share price to rise in the near term, while 6% of IG clients with open positions on the stock expect the share price of Pfizer to fall.
Pfizer Inc. – Technical View
The share price of Pfizer has moved to test resistance (red trend line) of the large wedge-shaped consolidation.
To unlock gains we would like to see a close above this resistance level before targeting a move towards the resistance high at 52.50. In this scenario a close below horizontal support (dotted line) at 45.55 might be used as a stop loss consideration for the trade.
In summary:
Pfizer quarterly revenue has declined in the mid-single digit region against its comparative quarter
Revenue and EPS for the reporting period were both ahead of consensus estimates
The share price currently trades at a 15% discount to a mean of analyst price targets
The majority of IG clients with open positions on the stock expect the price to rise in the near term
The share price is currently testing trend line resistance, a close above / upside break of this level could unlock gains towards the 52.50 level
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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