Pfizer Q2 earnings Preview


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A unique all-time chance?

By: Ahura Chalki

2020 and earnings reports of any company cannot be a part of Pandemic hits, disadvantages, and benefits. As always, anything bad even happens, there are some companies that can benefit from that, an investor, what is important is to put the money in the right basket!

Pfizer will publish its second-quarter earnings report 28. July before the market opens.

Pfizer (PFE) in quarter first earnings of $0.80 per share, beat the Zacks Consensus Estimate of $0.77 per share. For tomorrow, Zakas estimate for Pfizer, the world’s largest pharmaceutical company is $0.64 per share, which represents a year-over-year change of -20% and Revenues are expected to be $11.94 billion, down 10% from the year-ago quarter.

For the current quarter, we have to keep two things in mind. First of all, as it is expected, revenues and EPS will be lower than last year, so what is important at the moment is to compare the published results with estimated and weight on that more than comparing with past years.  On the other hand, as pandemic became in the center of any estimates, Pfizer as one of the companies which are so close to last stage of testing its Vaccine has a very good chance to recover all it’s lost value. Even if more than one company can create the vaccine, still the market for that is big enough as 8 Billion dozes so the opportunity is there most probably for them to use.

The company had been entered in a very risky rally, but based on the latest reports, they got lucky incorporation with German biotech firm BioNTech to be one of the high chances of producing a vaccine. As CNBC reported, two out of four of the companies’ coronavirus vaccine candidates, BNT162b1 and BNT162b2, have been granted the ‘fast track’ designation by the FDA and the US government.

Also, the US government entered into a deal with the company to manufacture 100 million doses of a COVID-19 vaccine in the United States, which for sure reads as positive news.

Technical overview

Technically price moves at its daily pivot at the moment. Better than expected results will push the market higher, however even if the results will not be in the favor of investors, following news from Vaccine can lead the market. The first resistance sits at 23rd July High ($39.50), which breathing this level will send it to second resistance at $41, 2020 high, seen on January 20. On the flip side, first support sits at 20 DMA $36.

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