PFIZER INC.: THE COMPANY REPORTED A 20.0% DROP IN REVENUE IN THE FIRST QUARTER

Current trend

Shares of Pfizer Inc., the largest American pharmaceutical company, are adjusting within a long-term downtrend, holding in the area of 28.12.

Investors are analyzing the financial report for the first quarter, which turned out to be ambiguous: revenue fell by 20.0% YoY to 14.88 billion dollars, exceeding analysts' forecasts by 0.950 million dollars. The development of negative dynamics was primarily facilitated by a drop in sales of the Comirnaty anti-COVID vaccine and the Paxlovid drug by 88.0% and 50.0% compared to 2023, respectively, but the sale of anticancer drugs and drugs for cardiovascular diseases increased significantly. The corporation's net income adjusted by -44.0%, to 3.1 billion dollars, and the adjusted earnings per share (EPS) figure was 0.82 dollars, surpassing preliminary estimates of 0.31 dollars. Pfizer Inc.'s management still expects revenue around 58.5-61.5 billion dollars by the end of this year, while the forecast for adjusted EPS was raised to 2.15-2.35 dollars from 2.05-2.25 dollars earlier.

In addition, during the week, the company received a registration certificate from the Hong Kong Department of Health for the RSVpreF bivalent vaccine to combat lower respiratory tract diseases associated with respiratory syncytial virus in patients over 60 years of age, as well as infants under six months of age. It is expected that the drug will be available to residents of Macau in June, and sales in Hong Kong will begin in August. Experts are confident that the build-up of the vaccine assortment and their expansion into a new market will contribute to profit growth, supporting the position of the emitter's shares.

Support and resistance

Technically, for the second week in a row, the quotes are adjusted upwards against the long-term downtrend and are currently testing the level of 28.12 (Murrey level [0/8]), consolidating above which will allow the upward dynamics to continue to 28.91 (Murrey level [ 2/8]) and 30.00 (area of annual highs). The key for the "bears" is the level of 26.56 (Murrey level [4/8]), supported by the central line of Bollinger Bands. If consolidated below it, the decline may continue to 25.00 (Murrey level [0/8]) and 24.22 (Murrey level [-2/8]).

Technical indicators show continued growth: Bollinger Bands are reversing up, MACD histogram is increasing in the positive zone, Stochastic is preparing to leave the overbought zone, which doesn't exclude price pullback to 26.56, which is unlikely to lead to a change in the short-term uptrend.

Resistance levels: 28.12, 28.91, 30.00.

Support levels: 26.56, 25.00, 24.22.

Trading tips

Long positions should be opened from the level of 28.35 or after a price reversal around 26.56 with targets of 28.91, 30.00 and stop-losses of 27.95 and 26.00, respectively. Implementation period: 5–7 days.