Both Merck and Pfizer are set to release their Q2 ’24 financial results on Tuesday morning, July 30 ’24, before the market opens. Pfizer, which has seen a decline in its stock price from $60 to the $25 – $30 range post-Covid, is expected to report $13 billion in revenue, $4.1 billion in operating income, and $0.46 per share. This represents a year-over-year growth of 2%, +16%, and -31% respectively. The company has made efforts to cut operating expenses and is looking to sustain its dividend payout.
On the other hand, Merck is expected to report $15.8 billion in revenue, $5.7 billion in operating income, and $2.15 in EPS with an expected year-over-year revenue growth of 5%. The company’s focus on Keytruda and other key drugs is expected to drive its revenue growth in the coming years.
From a market perspective, both Pfizer and Merck provide uncorrelated large-cap pharma options for investors. While Pfizer has faced challenges in maintaining its stock price and sustaining its dividend, Merck’s focus on key drugs like Keytruda positions it well for future growth. The market conversation is currently dominated by Big Tech and growth stocks, but these pharma giants offer a different investment opportunity.
Looking at the historical performance of both companies since 2000, it is evident that they have lagged behind due to various factors. However, with strategic moves and a focus on key drugs, both Pfizer and Merck are aiming for growth and stability in the future.
Investors should consider the financial results and outlook of both companies carefully before making any investment decisions. While Pfizer presents a more challenging situation, Merck’s focus on key drugs and revenue growth projections make it a more stable option in the pharma sector. As always, past performance is not indicative of future results, and investing in the stock market carries risks that should be carefully evaluated.
