How Could Pfizer & Ebay Fair After Q2 Earnings?

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Pfizer Revenues Expected to Slow in Q2

Pfizer reports the last quarter’s results on Tuesday, July 28th at 6:45 EST (12:45 CET). A press conference will be held at 10:00 EST (16:00 CET)

Top and bottom-line expectations:

  • Earnings per share: $0.64 compared to $0.80 last quarter
  • Revenue: $11.9B compared to $12.0B last quarter

Will R&D Costs Accelerate?

Guidance: Pfizer is expected to affirm an annual EPS of $2.82-2.92, and sales of $48.5-50.5B. Focus is on R&D expenses, since this constitutes the bulk of Pfizer’s costs, and is likely to be influenced by COVID vaccine and treatment research. Increased R&D costs could weaken the stock price.

Pipeline: Last quarter, the company reported potential delays in new studies, and said they’d resume clinical trials in the second half. Look to see if they confirm this.

Performance Hangs on Vaccine

Vaccine update: It’s not expected that the CEO will use the conference call to announce anything about the COVID vaccine, but investors are likely to ask about it, which might prompt some more information.

Upjohn merger with Mylan update, has there been a delay because of COVID?

Is Pfizer Overvalued?

Some analysts are pointing out that pharma stocks developing treatments and vaccines for COVID might be overvalued. Given the urgency for treatment and vaccines, companies like Pfizer might not be able to capitalize on the vaccine, at least in the first year. The company has also acquired a substantial amount of debt, taking advantage of low-interest rates. Combined, the company could have lower earnings in the near term, which could depress the stock price in the latter half of the year.

Will eBay Top Quarterly Estimates?

eBay will report Q2 earnings on Wednesday, July 29th at 16:00 EST (22:00 CET), with a press conference at 17:00 EST (23:CET), after the US market close.

Top and bottom-line expectations:

  • Earnings per share: $1.05 compared to $0.77 last quarter
  • Revenue: $2.80B compared to $2.37B last quarter

*Note that on June 4, the eBay guided EPS of $1.02-1.06 and Rev $2.75-2.80B

Put to Test Amid Lockdown Easing?

Gross Merchandise Volume (GMV): eBay is expected to have improved sales due to lockdowns in the US. The company projected an increase of 23-26% in the quarter. We want to pay attention to what they guide for the rest of the year.

Guidance: With the economy reopening, does eBay expect a drop in sales, or the trajectory to continue. They will provide third-quarter guidance, with current market expectations of EPS $0.80 and Revenues of $2.51B

eBay Ready to Complete in Core Marketplace?

Sale of the classified business to Adevinta: currently, we don’t have an expected date for the deal, which would imply eBay take an important stake in the Norwegian company. However, the $9.2bn deal was reported last week.

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