Pfizer Inc. Just Beat EPS By 61%: Here's What Analysts Think Will Happen Next

Pfizer Inc. (NYSE:PFE) just released its first-quarter report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 6.9% to hit US$15b. Pfizer also reported a statutory profit of US$0.55, which was an impressive 61% above what the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Pfizer

Following the latest results, Pfizer's 22 analysts are now forecasting revenues of US$60.4b in 2024. This would be a solid 10% improvement in revenue compared to the last 12 months. Pfizer is also expected to turn profitable, with statutory earnings of US$1.44 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$60.1b and earnings per share (EPS) of US$1.41 in 2024. So the consensus seems to have become somewhat more optimistic on Pfizer's earnings potential following these results.

The consensus price target was unchanged at US$31.94, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Pfizer at US$45.00 per share, while the most bearish prices it at US$27.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Pfizer'shistorical trends, as the 14% annualised revenue growth to the end of 2024 is roughly in line with the 13% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 9.4% annually. So it's pretty clear that Pfizer is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Pfizer's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Pfizer going out to 2026, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Pfizer , and understanding them should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.