Pfizer (NYSE: PFE), one of the pharmaceutical industry’s heavyweights, finds itself navigating a challenging path in 2023 as its stock experiences a persistent downward trajectory.
On Tuesday, October 24, Pfizer’s stock hit a fresh 52-week low, slipping over 1.3% during the session, reflecting the tough year the company has endured.
PFE tumbled to as low as $30.32 in Tuesday trading, before slightly rebounding to close at $30.43 per share.
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What’s going on with PFE?
The root cause of this underperformance can be traced back to falling revenues, primarily stemming from weaker sales of COVID-19 vaccines.
The biotech giant thrived during the peak of the pandemic in 2021 and 2022, driven by unprecedented demand for its coronavirus products. However, as the world moves towards a post-pandemic era, this trend has significantly waned.
However, part of Pfizer’s more recent stock declines may be due to an expected decline in Q3 profits and revenue, prompting investors to take more caution.
Notably, the company is set to report its Q3 financial results on October 31, with analysts forecasting a year-over-year drop in earnings per share (EPS) and revenue.
The drugmaker is projected to report a quarterly loss of $0.19 per share in the third quarter, which would represent a year-over-year slump of more than 110%, according to Zacks Consensus Estimate. Revenue is anticipated to stand at $13.19 billion, down 38.3% from the same quarter last year.
Does this mean PFE will continue falling?
The above numbers only represent the consensus projections for Pfizer’s Q3 earnings picture, but it is the actual results that will likely make an impact on PFE’s shares.
That said, the stock may receive a much-needed boost if key financial metrics top expectations in the forthcoming report. On the other hand, missing the estimates would more likely than not apply further pressure on the drugmaker’s shares.
Following the latest declines, the company’s stock stands above a 40-month support located at around $30. falling below that level would send PFE to new record lows.
On the upside, the stock faces a near-term resistance at $31.78, followed by another barrier at about $34.12. Clearing those two resistance levels would allow the stock to reclaim the 100-day moving average (MA) of $35.50.
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