Pfizer ( PFE ) stock is trading in negative territory Tuesday even after the pharmaceutical giant topped analysts' expectations for its second quarter and raised its full-year outlook.
Track all markets on TradingView In the three months ended June 30 , Pfizer said its revenue increased 2.1% year-over-year to $13.3 billion, thanks in part to 22% revenue growth in the U.S. to $7.9 billion. Its earnings per share (EPS) declined 10.4% from the year-ago period to 60 cents.
"This was Pfizer's first quarter of topline revenue growth, on a year-over-year basis, since the fourth quarter of 2022 when our COVID revenues peaked," said Pfizer Chief Financial Officer David Denton in a statement. "Importantly, the strong 14% operational revenue growth of our non-COVID products in the second quarter demonstrates our continued focus on commercial execution."
The results topped analysts' expectations. Wall Street was anticipating revenue of $13 billion and earnings of 46 cents per share, according to Yahoo Finance .
"Pfizer once again delivered better-than-expected results at both the top and bottom line, wrote Lee Brown , global sector lead for healthcare at Third Bridge, in an emailed statement.
In addition to solid sales of Pfizer's heart disease drugs Vyndaqel and Vyndamax and its blood-clot treatment Eliquis, Brown highlighted Pfizer's cost-saving initiatives, "which are on track to deliver at least $4 billion in net cost savings by the end of this year, as well as recently launched manufacturing optimization program that is targeting cost savings of roughly $1.5 billion by the end of 2027."
Pfizer updates its full-year outlook
"With a successful first half now completed, we believe it is appropriate to update our full year earnings outlook to reflect our strong business performance," Denton said in prepared remarks .
Pfizer now anticipates revenue in the range of $59.5 billion to $62.5 billion and EPS in the range of $2.45 to $2.65 in 2024. This is up from its previous forecast of revenue in the range of $58.5 billion to $61.5 billion and earnings per share in the range of $2.15 to $2.35.
"We are clearly striving to bring about improved performance on both the top-and-bottom lines through focus, execution and delivering on our near-term commercial and financial goals," Denton said. "2024 is clearly a foundation year for Pfizer."
Is PFE stock a buy, sell or hold?
Not only is Pfizer one of Kiplinger's best stocks to buy , but Wall Street is also bullish on the healthcare stock .
According to S&P Global Market Intelligence , the average analyst target price for PFE stock is $32.19, representing an upside of more than 7% to current levels. Additionally, the consensus recommendation is Buy.
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