Pfizer prepares for earnings announcement amid fluctuating historical returns
- Analysts estimate Pfizer's earnings at $0.68 per share on sales of $14.11 billion for the upcoming earnings announcement in late April 2025.
- Historically, Pfizer has experienced an equal distribution of positive and negative returns after earnings, which can aid traders in planning their strategies.
- With Vyndaqel expected to drive significant growth, the stock performance will depend largely on how earnings results and future outlook meet investor expectations.
In the upcoming days, Pfizer, a notable pharmaceutical company based in the United States, is scheduled to announce its earnings on April 29, 2025. Analysts predict that the earnings will be $0.68 per share, along with sales reaching approximately $14.11 billion. This projection indicates a notable decrease compared to the same quarter last year, which recorded earnings of $0.82 per share and sales of $14.88 billion. The company has experienced a mixed performance regarding returns after earnings releases over the past five years, with a balanced distribution of 10 positive and 10 negative outcomes. One of the anticipated growth drivers for Pfizer is its drug Vyndaqel, which is expected to contribute significantly to sales growth, specifically outside of the Covid-19 product line. The post-earnings reaction of the stock will largely hinge on whether the results and future outlook align with investor expectations. Given Pfizer's historical performance post-earnings, event-driven traders often adopt various strategies to capitalize on market movements. One strategy involves positioning before earnings based on past trends, while another involves trading after the announcement based on immediate reactions and subsequent trends. The research indicates a median return of 2.7% following positive earnings and a median loss of -1.3% for negative returns within one day of announcements. Furthermore, by examining the correlation between 1-day and 5-day post-earnings returns, traders can apply a more calculated approach, particularly if strong correlations exist. Such strategies are crucial in determining whether to take a long position after earnings, especially in light of historical data revealing mixed market responses. It's also important to note that the performance of peers can sometimes influence Pfizer's stock reaction after the announcement of its earnings. Historical data highlights how the earnings of competitor firms can affect the market's view of Pfizer, implying that earlier earnings releases may set the stage for investor sentiment leading into Pfizer's own financial results report.