Why Pfizer Stock Blasted More Than 6% Higher Today

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Pfizer (NYSE: PFE) stock got a very effective shot in the arm on Wednesday. This was supplied by its latest earnings release, which saw the storied pharmaceutical company notch double beats on analyst estimates and provide encouraging guidance. The company's share price ended the day more than 6% higher, in contrast to the 0.3% slump of the S&P 500 index. The Covid effect not as damaging as feared For its first quarter, Pfizer reported before market open, the pharmaceutical giant took in just under $14.9 billion in revenue. While this was 20% below its first-quarter 2023 revenue, it wasn't unexpected -- the company continues to see a notable fall-off in sales of its Covid products (namely the Comirnaty vaccine and Paxlovid, a drug). Removing such goods from the equation, Pfizer would have enjoyed 11% year-over-year revenue growth. That dynamic also affected profitability. Non-GAAP (adjusted) net income saw a steeper fall, tumbling by 34% to $4.7 billion ($0.82 per share). At first glance, those drops were seriously bad news. However, analysts were expecting far worse. On average, they were estimating that Pfizer's revenue would total barely over $14 billion, and adjusted net income would be a mere $0.33 per share. In the earnings release, the company quoted its CEO Albert Bourla as attributing the better-than-expected performance to "increased revenue from several of our recent commercial launches and acquired products, as well as robust year-over-year growth for several key in-line brands, namely the Vyndaqel family, Eliquis, and the Prevnar family." Pfizer also did well with oncology drugs such as Ibrance and Xtandi. Full-year profitability guidance raised Pfizer's double beat on trailing results was compounded by a raise in profitability guidance. The company now believes its full-year adjusted net income will land at $2.15 to $2.35 per share, giving it a real shot at exceeding the collective $2.21 estimate from analysts. It left its revenue forecast unchanged; this stands at $58.5 billion to $61.5 billion, with the average prognosticator estimate at $60 billion. Should you invest $1,000 in Pfizer right now? Before you buy stock in Pfizer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Pfizer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $529,390!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Story continues See the 10 stocks » *Stock Advisor returns as of April 30, 2024 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer. The Motley Fool has a disclosure policy. Why Pfizer Stock Blasted More Than 6% Higher Today was originally published by The Motley Fool