Pfizer (PFE) Shares Fell Despite Improved Full-Year Outlook

Pfizer Inc. (NYSE:PFE) history dates back to 1849 when two cousins named Charles Pfizer and Charles Erhart founded the company in Brooklyn, NY. Pfizer initially focused on the chemicals business. However, it expanded over the years to become a pharmaceutical giant that currently develops and markets more than 200 drugs in the U.S. Its drug portfolio includes some of the famous names such as antidepressant Zoloft, antianxiety drug Xanax, and erectile-dysfunction drug Viagra.

The New York-based drug maker on Tuesday announced mixed financial results for the fourth quarter. It reported earnings of $594 million, or 10 cents per share for the quarter, as compared to a loss of $337 million, or 6 cents per share in the comparable period of 2019. On an adjusted basis, profit rose to 42 cents per share but missed the consensus forecast of 50 cents per share.

Revenue jumped 12 percent on a year-over-year basis to $11.68 billion, beating the analysts’ average estimate of $11.48 billion. If we look at the sales performance of different segments, oncology vaccines revenue jumped 17 percent, while rare disease vaccines revenue climbed 26 percent in the quarter. Moreover, revenue from internal medicine and hospital segments rose 1 percent and 8 percent, respectively.

Pfizer raised its earnings outlook for 2021. It now expects to report earnings in the range of $3.10 per share to $3.20 per share for the current fiscal year, as compared to its previous guidance between $3.00 per share to $3.10 per share. Moreover, revenue is expected to come between $59.4 billion to $61.4 billion, as compared to the consensus forecast of $58.3 billion.

The improved outlook came as the company expects to generate $15 billion in revenue from its COVID-19 vaccine. Pfizer plans to make 2 billion doses of the vaccine this year.

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Pfizer (PFE) shares slipped 2.26 percent to $34.99 on Tuesday following the results. PFE stock has not gained any value during the past 12 months, while it is down nearly 5 percent on a year-to-date basis.