Pfizer’s Q2 revenue declines by 11% on a year over year basis

Written by: Wajeeh Khan
July 28, 2020
  • Pfizer’s Q2 revenue declines by 11% on a year over year basis.
  • The U.S. durgmaker reports £2.66 billion of net income in Q2.
  • Pfizer upwardly revises its forecast for the full fiscal 2020.

Pfizer (NYSE: PFE) released its quarterly financial results on Tuesday that came in stronger than what the experts had forecast. On the back of its hawkish performance in the second quarter, the company upwardly revised its financial guidance for the full year despite the rising COVID-19 uncertainty.

Shares of the company were reported 3.4% up in premarket trading on Tuesday. Including the gain, Pfizer is now exchanging hands at £29.70 per share that translates to a year to date decline of about 2.5% after recovering from an even lower £22.12 per share in March. Learn more about why prices rise and fall in the stock market.

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Pfizer’s financial results come only days after it made a joint statement with BioNTech that the candidate vaccine for COVID-19 treatment has entered the late-stage trial. Here’s what we know about Pfizer’s deal with the U.S. government.

Pfizer’s Q2 financial results versus analysts’ estimates

According to FactSet, experts had forecast the company to print £8.99 billion in revenue in the second quarter. Their estimate for earnings per share (EPS) was capped at 52.02 pence. In its report on Tuesday, Pfizer topped both estimates posting a higher £9.16 billion in revenue and 60.56 pence of earnings per share in Q2.

At £2.66 billion, the American multinational pharmaceutical corporation said its net income in the second quarter came in significantly lower than £3.92 billion in the same quarter last year. On a year over year basis, Pfizer’s quarterly revenue also came in 11% lower. Its peer, Moderna, also announced to have started a late-stage trial of its experimental COVID-19 vaccine on Tuesday.

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Other prominent figures in Pfizer’s earnings report

Other prominent figures in Pfizer’s financial report on Tuesday include a 4% decline in revenue from Biopharma to £7.61 billion and a much broader 32% decline in revenue from Upjohn to £1.56 billion.

The U.S. drugmaker also said on Tuesday that it now expects its adjusted earnings per share to fall in the range of £2.21 to £2.29 in fiscal 2020. For the full-year revenue, it forecasts a range of £37.73 billion to £39.29 billion. In its previous estimate, the company had anticipated up to £2.27 of earnings per share on revenue of up to £39.21 billion for the full year.

Pfizer’s performance in the stock market also reported downbeat last year with an annual decline of just under 10%. At the time of writing, the New York-based multinational pharmaceutical corporation has a market cap of £161.91 billion and a price to earnings ratio of 13.43.