Slowly but surely, the company's prospects are looking more attractive.
The pipeline could yield a winner, but so could a few organizational changes.
PFE has beaten analyst estimate both top- and bottom line. The firm has also raised its full-year guidance. Investors have not taken the earnings news too positively, however, because significant portion of the growth has been driven by Covid-19 related products or non-recurring items. Based on a single stage dividend discount model and a set of traditional price multiples, PFE appears to be undervalued.
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Pfizer scored a double beat on revenue and adjusted EPS, bolstered by the surprising performance of its COVID franchise. Despite that, the lukewarm post-earnings response suggests Pfizer needs to flex its muscles on its ex-COVID growth optionalities. PFE has likely moved past its long-term lows in early 2024, underscoring the market's conviction that the worst is over.
After Pfizer (PFE) posted a third quarter earnings beat and raised its full-year guidance, CEO Albert Bourla joins Market Domination to discuss the "exceptional quarter." Bourla notes that Pfizer in addition to earnings and revenue, the company's COVID and non-COVID businesses also topped expectations.
Pfizer's dividends should keep flowing and growing.
Pfizer Inc (NYSE:PFE, ETR:PFE)'s reliance on a rebound in demand for Covid-19 products in expectation-beating third-quarter results likely hit sentiment, according to Bank of America analysts. Though the drug maker hiked guidance on better-than-estimated revenue on Tuesday, shares fell by 1.8% following the results.
Throughout the Q3 reporting cycle, several companies, including Pfizer, Philip Morris, and Tenet Healthcare, have stolen the spotlight, with each raising guidance.
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The specter of an activist investor looms over the company.
In a Tuesday interview with CNBC's Jim Cramer, Pfizer CEO Albert Bourla struck a positive tone about activist investor Starboard Value, saying he agreed with some of its criticisms, but maintained that the company is headed in a good direction. "I think we are doing a lot of changes.