Pfizer posted excellent Q2 results. Pfizer’s quarterly revenue soared 92% to $ 18.977 billion from $ 9.864 billion a year earlier, while market consensus was expecting a figure of $ 18.7 billion. Vaccine revenue increased sevenfold to $ 9.23 billion from $ 1.25 billion. Revenues from the sale of the vaccine against COVID-19, developed in conjunction with the German BioNTech SE, amounted to $ 7.84 billion. The company’s net profit grew by 59% to $ 5.563 billion compared to $ 3.489 billion in the same period last year. Earnings per share rose 58% to $ 0.98 from $ 0.62 a year earlier. Profit excluding one-off factors jumped 73% to $ 1.07 per share from $ 0.62 per share, beating the market forecast of $ 0.97 per share.
TIKR: PFE
PRICE
$48
TARGET PRICE
$56
UPSIDE
17%
According to the new management forecast, by the end of 2021, Pfizer’s revenue will amount to $ 78-80 billion, and net income per share excluding one-time factors – $ 3.95-4.05, which is better than the previous forecast, respectively, at $ 70.5-72.5 billion for revenue and $ 3.55-3.65 for earnings per share. The COVID-19 vaccine annual revenue forecast was raised 29% to $ 33.5 billion from $ 26 billion. We appreciate Pfizer’s Q2 results and other recent news, and therefore raise our forecasts for the company’s key financials. We expect Pfizer’s revenues and earnings per share to grow at an average rate of 6% and 13%, respectively, over 2020-2025, which will be one of the best results in the pharmaceutical sector in the medium term. Despite its excellent results, improved annual outlook by management and generous dividend yield, Pfizer shares remain markedly undervalued relative to competitors and the sector.
Pfizer Inc. is a global biopharmaceutical company with a diverse portfolio of pharma products covering the areas of cardiovascular, anti-infectives, CNS, anti-inflammatory, oncology, metabolic disease, and others. It also has a strong vaccine portfolio. It owns 32% of GSK Consumer and divested its Upjohn business to Mylan in November 2020.