A look at Pfizer
Pfizer (PFE), one of the world’s largest pharmaceutical companies, divides its business into two segments: Innovative Health and Essential Health. The chart below shows Pfizer’s revenue and EPS since Q1 2017, and estimates for Q2 2018.
Analysts’ revenue estimate
Pfizer’s revenue is primarily driven by pharmaceuticals Lyrica, Ibrance, Eliquis, Xeljanz, and Xtandi, new products, and alliance revenue. Analysts expect Pfizer’s revenue to rise 3.4% year-over-year to $13.3 billion in Q2 2018, and for it to see EPS of $0.74. Pfizer is set to announce its Q2 2018 results on July 31.
On June 6, Pfizer announced a ~$600 million investment through Pfizer Ventures in biotechnology and emerging growth companies. At present, Pfizer Ventures invests in six neuroscience companies: Aquinnah, Autifony, MindImmune, Neuronetics, Cortexyme, and MISSION.
Pfizer stock rose ~0.2% in June and had risen ~0.4% year-to-date as of July 3. Analysts’ 12-month target price of $39.86 implies the stock could return ~9.7% based on its July 3 price of $36.35.
Of the 22 analysts tracking Pfizer, two recommend “strong buy,” ten recommend “buy,” eight recommend “hold,” and two recommend “strong sell.” The iShares US Healthcare ETF (IYH) invests 6.1% of its holdings in Pfizer, 4.0% in AbbVie (ABBV), 4.7% in Merck (MRK), and 2.6% in Gilead Sciences (GILD).