Investing

Earnings Previews: BP, Pfizer, Under Armour

Pfizer

Drugmaker and Dow Jones industrial average component Pfizer Inc. (NYSE: PFE) has added more than a third to its share price over the past 12 months. That gain includes a dip from a new all-time high posted in mid-August. Since then, the shares are down more than 14%.

Pfizer’s share price increase pales compared to rival coronavirus vaccine maker Moderna, which has seen a share price hike of more than 400% in the past 12 months. Pfizer recently announced that the U.S. government has purchased 50 million doses of the company’s vaccine for young children. Investors are likely to put a lot of weight on the company’s outlook for next year.

No analysts rate Pfizer stock at Sell or worse. Of 20 analysts, 16 rate the stock at Hold and the other four give the shares a Buy rating. At a share price of around $43.30, the upside potential based on a median price target of $45 is 3.9%. At the high target of $61, the upside potential is almost 41%.

Third-quarter revenue is forecast at $22.82 billion, up 20% sequentially and 88% year over year (pre-vaccine). Adjusted EPS are pegged at $1.09, up 1.5% sequentially and 27.5% year over year. For the full year, analysts expect Pfizer to report EPS of $4.06, up 83%, on sales of $81.56 billion, up 95%.

Pfizer stock trades at 10.6 times expected 2021 EPS, 11.6 times estimated 2022 earnings and 12.3 times estimated 2023 earnings. The stock’s 52-week range is $33.06 to $51.86. Pfizer pays an annual dividend of $1.56 (yield of 3.63%).

Under Armour

Sports apparel and gear maker Under Armour Inc. (NYSE: UAA) has added about 65% to its share price over the past 12 months. Rival Nike’s share price has increased by about 36% over the same period. Under Armour’s stock price fell by about 13% in the month of September on its rival’s comment that Nike was having supply chain issues. Since then the stock has bounced up about 10%. We’ll find out Monday afternoon how Under Armour’s supply chain performed in the third quarter.

Sentiment on the stock is mixed, with 13 of 26 analysts giving the shares a Hold rating. Another 10 rate the stock a Buy or Strong Buy. At a price of around $22, the upside potential based on a median price target of $26 is 18%. At the high target of $38, the upside potential is about 73%.

Third-quarter revenue is forecast at $1.47 billion, up nearly 9% sequentially and 2.8% higher year over year. Adjusted EPS are forecast to come in at $0.15, down 38% sequentially and 35% lower year over year. For the full year, analysts have currently forecast EPS of $0.54, compared to a loss last year of $0.26, and revenue of $5.48 billion, up more than 22%.

Under Armour stock trades at 37.3 times expected 2021 EPS, 33.2 times estimated 2022 earnings and 25.6 times estimated 2023 earnings. The stock’s 52-week range is $13.52 to $26.45. Under Armour does not pay a dividend.