Pfizer’s strong EPS beat streak faces test as Q2 earnings loom

Pfizer (NYSE:PFE) is set to report its second quarter earnings on Tuesday, August 5th, before the market opens, with analysts projecting a modest performance rebound.

The consensus EPS estimate stands at $0.57, representing a 5.0% decline year-over-year, while revenue is expected to reach $13.53 billion, reflecting a 1.9% increase from the prior-year quarter.

Estimate trends have been broadly positive heading into the print: EPS estimates have seen 7 upward revisions and 3 downward over the past 90 days. Revenue estimates have been revised upward 8 times, with just 2 cuts during the same period.

Pfizer has a strong record of earnings beats, exceeding EPS expectations in each of the past eight quarters. However, it has only beaten revenue estimates half the time over the last two years, underscoring potential top-line volatility.

“Pfizer’s strong EPS surprise streak and positive earnings revisions are encouraging, but patent cliff risks remain a major concern for future growth. Valuation appears attractive with ratios below sector medians and Wall Street seeing significant upside, yet EPS stagnation tempers enthusiasm,” SA columnist KM Capital said.

Investors will be watching for updates on Pfizer’s cost restructuring progress, commentary around macro headwinds, patent expirations, and any M&A-related updates.

With the company’s Q1 results in April, Pfizer (PFE) indicated plans to explore acquisitions or partnerships to add cardiometabolic assets, including weight loss therapies, to the pipeline.

PFE shares have lost nearly 12% year-to-date, underperforming S&P 500’s 7% rise.