The Zhitong Finance App learned that Pfizer (PFE.US) is scheduled to announce the results for the first quarter of 2024 before the US stock market on May 1. According to Zacks statistics, the market generally expects Pfizer's Q1 revenue to be US$13.86 billion, a year-on-year decrease of 24.2%, and earnings per share of 0.56 US dollars, a year-on-year decrease of 54.5%.

Pfizer shares have not performed well in recent years, and the stock price is close to an 11-year low. The stock price fell sharply from $35 at the beginning of January 2021 to around $25 at present, a decline of 30%. In contrast, the S&P 500 index has risen by about 35% over a period of about three years. Although judging from the valuation, Pfizer still seems to have room to rise, the stock's valuation in recent years has fluctuated in a large range due to strong growth in the company's performance during the COVID-19 pandemic, driven by vaccines and antiviral treatments.

Today, the company's revenue from COVID-19 products continues to decline. In the last quarter, Pfizer achieved revenue of US$14.2 billion, down 42% year over year, mainly due to a drop in sales of its COVID-19 products. Sales of products excluding COVID-19 increased 8%. Strong growth in Vyndaquel and the RSV vaccine abrysvo helped overall sales. Pfizer's adjusted net profit margin plummeted by more than 2,200 basis points to 4.2% due to restructuring costs of $2.6 billion and a year-on-year increase in SG&A and R&D expenses as a percentage of revenue. Lower revenue and margin contraction also resulted in basic and adjusted earnings of $0.10 per share, compared to $1.14 in the same period last year.

Analysts expect Pfizer's earnings and revenue per share to decline year over year due to continued challenges such as falling revenue from COVID-19 products and failure in diet pills.

Argus has downgraded Pfizer's rating to “hold,” citing concerns about the company's profit growth and delays in the GLP-1 development plan.

The investment company said Pfizer would need to reimburse the approximately $17 billion in revenue these products generated during peak sales periods before losing patent protection. It notes that Pfizer expects revenue growth of 3% to 5% in 2024, excluding COVID-19 products and the acquisition of Seagen, which is lower than 7% in 2023.

Argus also mentioned the setback of the company's GLP-1 project, where twice-daily formulation development was terminated due to adverse reactions.

The bank's analyst added, “Pfizer will focus on developing a daily formula, and pharmacokinetic results will be announced in 2024, but it will lag behind LLY.US (LLY.US)'s Zepbound and Novo Nordisk (NVO.US)'s Wegovy (NVO.US) in the weight loss therapy market.”

Recently, however, the company has made some progress, such as positive results from Abrysvo and promising cancer drugs, which give hope for a reversal of the situation. The company's product line, including the successful approval of the vaccine and the effectiveness of the RSV vaccine, are seen as positive signs for the future.