The 2024 Q3 earnings season continues to chug along, with a decent chunk of S&P 500 companies already delivering their results.
And throughout the period, several companies, including Pfizer PFE, Philip Morris PM, and Tenet Healthcare THC, have stolen the spotlight, with each raising guidance.
Let’s take a closer look at the reports.
Pfizer Sees Bullish Outlook
Pfizer shares have largely been disappointing in 2024, up 3% and widely underperforming relative to the S&P 500. Still, the recent set of favorable results could perk shares up in the near term, with the company raising its current-year sales guidance by a solid $1.5 billion while also raising its adjusted EPS outlook.
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Strong demand for Paxlovid following a recent wave of COVID-19 helped drive the better-than-expected results, with successful cost-cutting measures also providing tailwinds. Impressively, the company is now on track to achieve at least $4 billion in cost savings by the end of its FY24. The successful cost-cutting plan is quite significant here for obvious reasons, namely margin expansion.
As shown below, the company’s margins have cratered over the last several years, with PFE now hopeful the tide will change.
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Analysts have taken their earnings expectations higher across the board over recent months, undoubtedly a bullish sign.
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Philip Morris Reports Record Results
Philip Morris shares have been notably strong in 2024, up 45% and regularly seeing positive post-earnings reactions as of late. Impressively, the company delivered record net revenues and EPS, enjoying momentum across all regions and categories.
The favorable results have helped push the stock into a favorable Zacks Rank #2 (Buy), with the revisions trend for its current fiscal year shifting heavily bullish beginning in May.
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The company’s shipment volumes for its oral smoke-free products jumped nearly 25% year-over-year, primarily fueled by robust demand for ZYN nicotine pouches. Impressively, its nicotine pouch volumes jumped 41% in the US, whereas volumes outside of the US saw a 70% climb.
And to top it off, the company raised its quarterly dividend payout by a sold 3.8%, bringing the annualized tally to $5.40 per share. Philip Morris has long been a favorite among income-focused investors, regularly increasing its payouts over its history.
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THC Shares Remain Hot
Tenet Healthcare shares have been scorching-hot in 2024, up 115% and even outperforming many of the Mag 7 members. Favorable quarterly results have helped keep shares moving higher, popping following the latest print that delivered an adjusted EBITDA guidance upgrade.
The revisions trend for its current fiscal year has been remarkably bullish, with the current $10.72 Zacks Consensus EPS estimate up nearly 75% over the last year and suggesting 50% growth year-over-year. The stock sports a favorable Zacks Rank #2 (Buy).
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The company’s cash-generating abilities also saw a big boost, with free cash flow of $1.8 billion nearly 80% higher than the year-ago figure. Undoubtedly a positive, the company continued to aggressively buy back its shares throughout the period, scooping up $124 million worth.
As shown below, THC has regularly bought its shares back over recent years, helping establish a small floor.
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Bottom Line
The 2024 Q3 earnings season continues to roll along, with a nice variety of companies already delivering quarterly results.
And throughout the period, we’ve seen many companies deliver robust results, a list that includes Pfizer PFE, Philip Morris PM, and Tenet Healthcare THC. All three companies raised their outlooks following their results, providing a bullish outlook.
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See This Stock Now for Free >>Pfizer Inc. (PFE) : Free Stock Analysis Report
Philip Morris International Inc. (PM) : Free Stock Analysis Report
Tenet Healthcare Corporation (THC) : Free Stock Analysis Report
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