Why Pfizer shares rose today, then gave up gains

shares Pfizer (NYSE:PFE) The stock rose 3.2% on Tuesday morning before giving up all those gains. The drug stock was down 0.6% as of 12:05 p.m. ET.

The shifts come after Pfizer reported fourth-quarter and full-year results before the market opened. The company reported fourth-quarter revenue of $14.2 billion. Despite a 41% year-over-year decline, it was still ahead of Wall Street’s consensus revenue estimate of $13.3 billion.

Pfizer reported a fourth-quarter loss of nearly $3.4 billion, or $0.60 per share. Generally Accepted Accounting Principles (GAAP)However, the drugmaker recorded adjusted earnings of $0.10 per share, well above the average analyst estimate of an adjusted loss of $0.20 per share.

Why did Pfizer’s stock price rise first and then fall?

Investors initially reacted positively to Pfizer’s better-than-expected fourth-quarter revenue and earnings. Part of the reason for this surprise was higher-than-expected sales of its COVID-19 products. Analysts on average expected Comirnaty to post $4.99 billion in sales for the quarter, according to FactSet, while Pfizer reported $5.36 billion in COVID-19 vaccine sales.

That enthusiasm didn’t last long, though, most likely because Pfizer didn’t make any revisions to the 2024 guidance it issued in December, and the company still expects revenue this year to be between $58.5 billion and $61.5 billion. , Comirnaty and antiviral therapy Paxlovid have combined COVID-19 sales of approximately $8 billion.

Is Pfizer Stock a Buy After Q4 Update?

Pfizer’s fourth-quarter results didn’t give investors a good reason to buy the stock. Nonetheless, I think it’s a good choice for income investors.

Pfizer’s stock price currently offers a dividend yield above 6.1%. The drugmaker faces headwinds from the COVID-19 franchise, with several of its products set to lose exclusivity in the coming years. However, Pfizer’s new products, new indications for existing products and, I think, business development transactions should enable the company to return to growth despite these challenges.

Should you invest $1,000 in Pfizer right now?

Before buying Pfizer stock, consider the following factors:

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Keith Speights Worked at Pfizer. The Motley Fool works for and recommends Pfizer. The Motley Fool works at Pfizer. disclosure policy.

Why Pfizer shares rose today, then gave up gains Originally published by The Motley Fool

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