Why Pfizer Stock Jumped Today, But Then Handed Back Gains

Shares of Pfizer (NYSE:PFE) jumped as much as 3.2% higher on Tuesday morning before giving up all the gains and then some. Pharmaceutical stocks were down 0.6% as of 12:05 p.m. ET.

These swings came after Pfizer reported its fourth-quarter and full-year results before the opening bell. The company reported fourth-quarter revenue of $14.2 billion. While this was a 41% year-over-year decline, it still exceeded Wall Street’s consensus revenue estimate of $13.3 billion.

Pfizer posted a fourth-quarter loss of nearly $3.4 billion, or $0.60 per share, based on generally accepted accounting principles (GAAP). However, the drugmaker posted adjusted earnings per share of $0.10, which was well above the average analyst estimate of an adjusted loss of $0.20 per share.

Why did Pfizer stock rise and then fall?

Investors initially reacted positively to Pfizer’s better-than-expected fourth-quarter sales and profits. The pleasant surprise came in part from higher-than-expected sales of its COVID-19 products. According to FactSet, Comirnaty’s average revenue this quarter was $4.99 billion. Pfizer reported COVID-19 vaccine sales of $5.36 billion.

However, the enthusiasm did not last long. The most likely reason for this is that Pfizer has made no changes to the 2024 guidance it issued in December. For the full year, the company still expects sales to be between $58.5 billion and $61.5 billion, with total COVID-19 sales for Comirnaty and antiviral therapy Paxlovid of about $8 billion.

Is Pfizer stock a buy after the Q4 update?

There was nothing in Pfizer’s fourth-quarter results that would give investors a good reason to buy the stock. Still, I think it’s a good choice for income…

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