Pfizer Inc’s (PFE) third-quarter earnings, reported on Tuesday, surged past Wall Street estimates, supported by strong sales of its breast cancer drug Ibrance. The company also revised up its full-year earnings forecast.
Pfizer shares closed higher for a third consecutive trading session in New York on Tuesday. It has also been the sharpest daily surge since April 30th. The stock went up 2.49% ($0.93) to $38.21, after touching an intraday high at $38.74, or a price level not seen since July 31st ($39.67).
Shares of Pfizer Inc have retreated 12.46% so far in 2019 compared with a 21.14% gain for the benchmark index, S&P 500 (SPX).
In 2018, Pfizer Inc’s stock went up 20.51%, thus, it outperformed the S&P 500, which registered a 6.24% loss.
Total revenue shrank 5% year-on-year to $12.68 billion during the third quarter, since revenue from pain treatment Lyrica more than halved to $527 million.
Sales of Pfizer Inc’s Ibrance drug surged 25% year-on-year to $1.28 billion during the latest quarter, while outstripping the median analyst estimate of $1.21 billion.
Meanwhile, net income attributable to shareholders went up to $7.68 billion ($1.36 per share) during the third quarter from $4.11 billion ($0.69 per share) in the year-ago period.
Earnings per share, which exclude special items, were reported at $0.75 during the latest quarter, while exceeding a consensus of estimates of $0.62 per share.
Pfizer Inc also raised its full-year adjusted earnings forecast to a range of $2.94 to $3.00 per share from a previously expected range of $2.76 to $2.86 per share.
Analyst stock price forecast and recommendation
According to CNN Money, the 10 analysts, offering 12-month forecasts regarding Pfizer Inc’s stock price, have a median target of $41.00, with a high estimate of $53.00 and a low estimate of $37.00. The median estimate represents a 7.30% upside compared to the closing price of $38.21 on October 29th.
The same media also reported that at least 8 out of 14 surveyed investment analysts had rated Pfizer Inc’s stock as “Hold”, while 5 – as “Buy”.
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