PreMarket Prep Stock Of The Day: Pfizer

In case you were wondering how COVID-19 vaccine sales would affect third-quarter earnings for Pfizer Inc. PFE, you got the answer on Tuesday before the open. The vaccine was a huge boost to third-quarter earnings and revenue, and it instigated higher FY2021 guidance.

The corresponding price action from Pfizer's earnings blowout makes it the PreMarket Prep Stock of the Day.

Pfizer Volatile In 2021: After ending 2020 at $36.81, Pfizer bottomed in March at $33.44 and embarked on its most impressive rally perhaps in the history of the issue.

Once the issue cleared the major resistance at the $44 area, it went to super rally mode and did not peak until August at $51.86.

In a case of too much too fast, the issue went into a retreat. The issue finally bottomed on Oct. 13 ($40.94) and put in a double bottom when it found buyers on Oct. 18 ($41.04). After the pair of lows were in place, the issue was higher in seven of the next 10 sessions.

The outliers were declines of a penny, a dime on Monday and a significant drop of 59 cents on Oct. 27 ($43.56 to $42.97).

It should be noted that Pfizer posted its high for the rebound on Monday ($44.29) and ended the session just shy of the high close for the move ($43.74) at $43.64.

Pfizer's Q3 Beat, Raised Guidance: Before the open, the company reported quarterly earnings of $1.34 per share, which beat the analyst consensus estimate of $1.09 by 22.94%. This is an 86.11% increase over earnings of 72 cents per share from the same period last year.

The company reported quarterly sales of $24.1 billion, which beat the analyst consensus estimate of $22.71 billion by 6.12%. This is a 98.66% increase over sales of $12.13 billion in the same period last year.

Also, the company raised FY21 adjusted EPS guidance from $3.55-$3.65 to $3.95-$4.05 vs a $3.70 estimate, and raised revenue guidance from $70.5 billion-$72.5 billion To $78 billion-$80 billion against a $72.78- billion estimate.  

PreMarket Prep's Take: When the issue was being covered on the show Tuesday, it was trading at the $45 area. Co-host Dennis Dick’s initial comments were on the drug sector as a whole.

“Many of these issues have made some huge moves, not so much in Pfizer, but the sector, on the whole, has been strong.”

When breaking down the premarket price action, the current high was identified ($45.50), which was just above a pair highs from mid-September at the $45.30 area. 

The full discussion on the issue from Tuesday’s show can be found here:

PFE Price Action: In a wild first 15 minutes of the session, the issue opened at $45.08, went to best the premarket high ($45.42), and then was engulfed with sellers. The ensuing decline took the issue beyond Monday’s low ($43.44) falling $43.05 and sharply reversed course once again.
That low came in just above a pair of lows from Thursday ($42.94) and Friday ($42.86),

In a remarkable fashion, the issue has roared back to make a new high for the day at $45.84 and remained near that level, up 4.41% at $45.56, near the end of Tuesday's session.