- Analysts estimate adjusted EPS of $1.03 vs. $0.58 in Q3 FY 2020.
- Pfizer revenue is expected to grow at the fastest pace in at least 15 quarters, more than doubling from Q3 FY 2020.
- Pfizer's recent U.S. approval for emergency use of its COVID-19 vaccine in children ages 5 through 11 is likely to fuel additional sales growth.
Pfizer Inc. (PFE) has experienced dramatic profit and revenue growth in recent quarters largely driven by sales of its vaccine against COVID-19 co-developed with German-based BioNTech SE (BNTX). The company's sales are likely to keep rising at a robust pace amid the pandemic, especially since the U.S. Food and Drug Administration (FDA) on Oct. 29 authorized the Pfizer-BioNTech vaccine for emergency use by millions of children 5 through 11 years of age.
Investors will be watching to see how fast Pfizer's profit and revenue growth will accelerate when the company reports earnings on Nov. 2, 2021 for Q3 FY 2021. Analysts expect adjusted earnings per share (EPS) and revenue to to rise at their fastest pace in at least the past 15 quarters.
Pfizer, in collaboration with BioNTech, was the first company to receive emergency use authorization (EUA) from the FDA for its vaccine. It received the EUA in December 2020. On Aug. 23, 2021, Pfizer also became the first company to gain full approval from the FDA for use of its vaccine in individuals 16 years of age and older. The company said its COVID-19 vaccine would now be marketed under the name Comirnaty.
Shares of Pfizer have underperformed the broader market over the past year. The stock has outperformed at various periods throughout the last year, but has lagged the market the majority of the time. Pfizer's shares have provided a total return of 36.1% over the past year, below the S&P 500's total return of 39.1%.
Pfizer Earnings History
Pfizer reported Q2 FY 2021 earnings and revenue that surpassed analysts' expectations. Adjusted EPS rose 72.8% compared to the year-ago quarter. Revenue expanded 92.4% year over year (YOY). It was the fastest pace of growth for either metric out of any quarter in at least the past three and a half years. Pfizer's exceptional growth during the period was driven by sales of its vaccine against COVID-19 that it co-developed with BioNTech. The company raised its guidance for full-year FY 2021.
In Q1 FY 2021, Pfizer's earnings and revenue beat consensus estimates. Adjusted EPS increased 47.1% compared to the year-ago quarter, marking a significant acceleration from the previous quarter's pace of growth. Revenue expanded 44.6% YOY. It was the second straight quarter of revenue growth after six straight quarters of declines. Revenue growth was boosted by sales of its COVID-19 vaccine. But even excluding those sales, Pfizer said its operational revenues (revenue that excludes the impact of foreign exchange rates) grew 8%, in line with its goal of delivering 6% compound annual growth through 2025.
Analysts are expecting Pfizer's earnings and revenue growth to continue accelerating in Q3 FY 2021. Adjusted EPS is forecast to rise 79.3% compared to the year-ago quarter on revenue growth of 114.7%. For full-year FY 2021, analysts expect adjusted EPS to increase 84.0%. Annual revenue is forecast to rise 92.6%. It would be the fastest pace of growth for either metric in at least the past four years.
|Pfizer Key Stats|
|Estimate for Q3 FY 2021||Q3 FY 2020||Q3 FY 2019|
|Adjusted Earnings Per Share ($)||1.03||0.58||0.75|
Source: Visible Alpha
Sales of the COVID-19 vaccine are likely to be the main driver of Pfizer's revenue over the next year. On Sept. 22, 2021, the FDA amended the EUA for the vaccine, approving it for use as a single booster dose administered at least six months after completion of the initial doses for the following individuals: those 65 years of age and older; those 18 through 64 years of age at high risk of severe COVID-19; and those 18 through 64 years of age who are frequently exposed to COVID-19 to the extent that it puts them at risk of suffering serious complications.
Food and Drug Administration. "FDA Authorizes Pfizer-BioNTech COVID-19 Vaccine for Emergency Use in Children 5 through 11 Years of Age." Accessed Oct. 31, 2021.
Pfizer Inc. "Pfizer Invites Public to View and Listen to Webcast of Pfizer November 2 Conference Call with Analysts," Page 1. Accessed Oct. 30, 2021.
Visible Alpha. "Financial Data." Accessed Oct. 29, 2021.
Food and Drug Administration. "FDA Takes Key Action in Fight Against COVID-19 By Issuing Emergency Use Authorization for First COVID-19 Vaccine." Accessed Oct. 31, 2021.
Food and Drug Administration. "FDA Approves First COVID-19 Vaccine." Accessed Oct. 31, 2021.
Pfizer Inc. "PFIZER REPORTS SECOND-QUARTER 2021 RESULTS," Page 1. Accessed Oct. 31, 2021.
Pfizer Inc. "Form 10-Q for the quarterly period ended April 4, 2021," Page 34. Accessed Nov. 1, 2021.
Pfizer Inc. "PFIZER REPORTS STRONG FIRST-QUARTER 2021 RESULTS," Page 1. Accessed Oct. 31, 2021.
Food and Drug Administration. "FDA Authorizes Booster Dose of Pfizer-BioNTech COVID-19 Vaccine for Certain Populations." Accessed Oct. 31, 2021.