What to Watch For When Pfizer Reports Tuesday Morning

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Pfizer Inc. (NYSE: PFE) is scheduled to release its third-quarter financial results before the markets open on Tuesday. The consensus estimates from Thomson Reuters are $0.75 in earnings per share (EPS) and $13.53 billion in revenue. The same period of last year reportedly had $0.67 in EPS and $13.17 billion in revenue.

Earlier this quarter it was announced that Pfizer, in collaboration with Bain Capital, would create Cerevel Therapeutics, a new biopharmaceutical company focused on developing drug candidates to treat disorders of the central nervous system (CNS).

Pfizer is contributing a portfolio of pre-commercial neuroscience assets to Cerevel, which include three clinical-stage compounds and several pre-clinical compounds designed to target a broad range of CNS disorders, including Parkinson’s, Alzheimer’s, epilepsy, schizophrenia and addiction.

The funds affiliated with Bain Capital Private Equity and Bain Capital Life Sciences have committed $350 million, with the ability to provide additional capital should it be needed in the future.

The goal is for Cerevel to expand treatment options in a therapeutic area where there is an urgent unmet need for patients. Bain Capital and Pfizer will support Cerevel in building a dedicated team of CNS scientists and life sciences executives with extensive experience in clinical development of potential therapies for patients who have neurological and neuropsychological diseases.

Excluding Monday’s move, Pfizer has outperformed the broad markets, with its stock up about 19% in the past 52 weeks. In just 2018 alone, the stock is up over 17%.

A few analysts weighed in on Pfizer ahead of the report:

  • Wolfe Research has a Market Perform rating.
  • Barclays has a Neutral rating with a $40 price target.
  • Cantor Fitzgerald has a Buy rating and a $53 price target.
  • Credit Suisse has a Hold rating with a $40 price target.
  • Morningstar has a Neutral rating with a $48 price target.
  • JPMorgan has a Buy rating with a $46 price target.

Shares of Pfizer were last seen up 2% at $43.46, with a consensus analyst price target of $43.11 and a 52-week trading range of $33.20 to $45.81.