Pfizer Q3 FY2021 Earnings Report Preview: What to Look For

Pfizer Inc. (PFE) has experienced dramatic profit and revenue growth in recent quarters largely driven by sales of its vaccine against COVID-19 co-developed with German-based BioNTech SE (BNTX). The company's sales are likely to keep rising at a robust pace amid the pandemic, especially since the U.S. Food and Drug Administration (FDA) on Oct. 29 authorized the Pfizer-BioNTech vaccine for emergency use by millions of children 5 through 11 years of age.

Investors will be watching to see how fast Pfizer's profit and revenue growth will accelerate when the company reports earnings on Nov. 2, 2021 for Q3 FY 2021. Analysts expect adjusted earnings per share (EPS) and revenue to to rise at their fastest pace in at least the past 15 quarters.

Pfizer, in collaboration with BioNTech, was the first company to receive emergency use authorization (EUA) from the FDA for its vaccine. It received the EUA in December 2020. On Aug. 23, 2021, Pfizer also became the first company to gain full approval from the FDA for use of its vaccine in individuals 16 years of age and older. The company said its COVID-19 vaccine would now be marketed under the name Comirnaty.

Shares of Pfizer have underperformed the broader market over the past year. The stock has outperformed at various periods throughout the last year, but has lagged the market the majority of the time. Pfizer's shares have provided a total return of 36.1% over the past year, below the S&P 500's total return of 39.1%.

Pfizer Earnings History

Pfizer reported Q2 FY 2021 earnings and revenue that surpassed analysts' expectations. Adjusted EPS rose 72.8% compared to the year-ago quarter. Revenue expanded 92.4% year over year (YOY). It was the fastest pace of growth for either metric out of any quarter in at least the past three and a half years. Pfizer's exceptional growth during the period was driven by sales of its vaccine against COVID-19 that it co-developed with BioNTech. The company raised its guidance for full-year FY 2021.

In Q1 FY 2021, Pfizer's earnings and revenue beat consensus estimates. Adjusted EPS increased 47.1% compared to the year-ago quarter, marking a significant acceleration from the previous quarter's pace of growth. Revenue expanded 44.6% YOY. It was the second straight quarter of revenue growth after six straight quarters of declines. Revenue growth was boosted by sales of its COVID-19 vaccine. But even excluding those sales, Pfizer said its operational revenues (revenue that excludes the impact of foreign exchange rates) grew 8%, in line with its goal of delivering 6% compound annual growth through 2025.

Analysts are expecting Pfizer's earnings and revenue growth to continue accelerating in Q3 FY 2021. Adjusted EPS is forecast to rise 79.3% compared to the year-ago quarter on revenue growth of 114.7%. For full-year FY 2021, analysts expect adjusted EPS to increase 84.0%. Annual revenue is forecast to rise 92.6%. It would be the fastest pace of growth for either metric in at least the past four years.

^{Source: Visible Alpha}

Sales of the COVID-19 vaccine are likely to be the main driver of Pfizer's revenue over the next year. On Sept. 22, 2021, the FDA amended the EUA for the vaccine, approving it for use as a single booster dose administered at least six months after completion of the initial doses for the following individuals: those 65 years of age and older; those 18 through 64 years of age at high risk of severe COVID-19; and those 18 through 64 years of age who are frequently exposed to COVID-19 to the extent that it puts them at risk of suffering serious complications.