Pfizer Reports Better-Than-Expected 1Q Results, Lifts COVID-19 Vaccine Sales Outlook

Pfizer (PFE) posted better-than-expected 1Q results driven by strong business performance and contributions from BNT162b2, the Pfizer COVID-19 vaccine. Meanwhile, the pharmaceutical company lifted its revenue and earnings guidance for 2021 following updated revenue expectations for BNT162b2.

Pfizer’s 1Q adjusted earnings rose 47% to $0.93 per share on a year-over-year basis and outpaced Street estimates of $0.78 per share. Revenues surged 45% to $14.6 billion and surpassed the consensus estimate of $13.6 billion.

The company’s vaccines sales were $4.9 billion in the quarter, significantly up on a year-over-year basis, while almost all other units recorded double-digit growth.

For 2021, the company projects revenue and adjusted earnings to be in the $70.5-$72.5 billion and $3.55-$3.65 per share range, respectively. Previously, the company guided revenue and adjusted earnings of $59.4-$61.4 billion and $3.10-$3.20 per share, respectively. The upward revision in guidance follows $26 billion in revenues expected from BNT162b2 in 2021, up from $15 billion, driven by additional supply agreements. (See Pfizer stock analysis on TipRanks)

The consensus estimates for revenue and earnings are pegged at $62.99 billion and $3.36 per share, respectively.

Following the 1Q results, Mizuho Securities analyst Vamil Divan reiterated a Buy rating and a price target of $42 (5.6% upside potential).

Divan commented, “Most of the guidance raise was due to increased expectations on COVID-19 vaccine sales (now up to $26Bn in 2021), but the guidance for the base business was also raised modestly. There remain multiple moving parts to the Pfizer story right now, but we believe most of their core assets are performing well and are impressed by their success with the COVID-19 vaccine, which we think bodes well for improved R&D productivity and pipeline success to improve the company’s 2026-2030 outlook.”

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 2 analysts suggesting a Buy and 5 analysts recommending a Hold. The average analyst price target of $42.50 implies 7% upside potential to current levels. Shares have increased 11.8% over the past year.

TipRanks data shows that financial blogger opinions are 97% Bullish on PFE, compared to a sector average of 70%.

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