Pfizer jumps 2% in premarket trading on an upbeat financial report
- Pfizer posts £9.61 billion in revenue in the first quarter and makes 64 pence of earnings per share.
- The pharmaceutical company is collaborating with BioNTech to develop COVID-19 vaccine.
- Pfizer expects the rate of vaccinations and new prescriptions to remain low in the second quarter.
Pfizer Inc. (NYSE: PFE) released its quarterly performance results on Tuesday that topped analysts’ estimates and also reaffirmed its guidance for full-year revenue. The drug manufacturer is currently working to develop an effective vaccine for COVID-19.
Pfizer was reported roughly 2% up in premarket trading on Tuesday.
Pfizer’s Q1 financial results versus analysts’ estimates
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According to Refinitiv, analysts had expected the company to make £9.45 billion worth of net sales in the first quarter. In terms of earnings per share (EPS), their estimate was capped at 58 pence. In its financial report on Tuesday, Pfizer boasted higher total sales of £9.61 billion and made 64 pence of earnings per share in Q1. Net sales, however, were reported 8% down versus the comparable quarter last year.
At £2.72 billion, Pfizer’s net adjusted profit in the recent quarter came in 12% lower than the year-ago figure of £3.11 billion.
Pfizer is collaborating with German BioNTech to ramp up its efforts in developing the COVID-19 vaccine and scale up its production. The company is expected to begin human trials of its candidate vaccine by the end of April.
Pfizer expects to make millions of doses of its prospect Coronavirus vaccine by the end of 2020. If successful, the American multinational pharmaceutical corporation will ramp up production to hundreds of millions of doses next year. According to CEO Albert Bourla of Pfizer:
“We are fully committed to confronting the public health challenge posed by the COVID-19 pandemic by collaborating with industry partners and academic institutions to develop potential approaches to prevent and treat COVID-19.”
The flu-like virus has so far infected more than 3 million people worldwide and has caused over 212,000 deaths.
Pfizer notes a lower rate of vaccinations and new prescriptions
As it focused entirely on COVID-19, Pfizer’s other clinical trials were temporarily put on hold in recent months. On Tuesday, the drugmaker said it is slowly starting to resume such trials as well.
The rate of vaccinations and new prescriptions in the first quarter, Pfizer added, was noted weaker as Coronavirus restricted people to their homes. This slowdown, as per Pfizer, is likely to continue in Q2 as well.
At £31 per share, Pfizer is currently trading around the same level at which it opened in the stock market in January 2020. On March 23rd, shares of the company dropped as low as £23 per share.
Pfizer is currently valued at £170.24 billion and has a price to earnings ratio of 13.64.