Pfizer Inc. ( PFE ) is set to report second quarter 2013 results on Jul 30, before the opening bell. Last quarter it posted a negative earnings surprise of 1.82%. Let's see how things are shaping up for this announcement.
Factors at Play for 2Q
This global biopharmaceutical company has delivered positive earnings surprises in three of the last four quarters with an average beat of 4.91%. Pfizer lowered its earnings and revenue outlook for 2013 following the divestment of its stake in its former animal health business, Zoetis, Inc. ( ZTS ).
In the second quarter, genericization will continue to hit revenues. To mitigate the impact of genericization the company is looking to contain costs and develop its pipeline. We expect the company to throw further light on its pipeline development efforts, while releasing the second quarter results.
Our proven model does not conclusively show that Pfizer is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive earnings Expected Surprise Prediction or ESP (Read: Zacks Earnings ESP: A Better Method ) and a Zacks Rank #1, 2 or 3 for this to happen.
Zacks ESP : The ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate currently stand at 54 cents.
Zacks Rank #3 (Hold) : Pfizer's Zacks Rank #3, however, increases the predictive power of ESP. That said we also need to have a positive ESP to be confident for an earnings surprise call.
Stocks to Consider
Here are some stocks you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season:
Amgen Inc. ( AMGN ) has Earnings ESP of +1.75% and holds a Zacks Rank #2 (Buy). Amgen will be reporting second quarter earnings on Jul 30 after the market closes.
Mylan Inc. ( MYL ) has Earnings ESP of +1.49% and holds a Zacks Rank #3. Mylan will be reporting second quarter earnings on Aug 1 before the market opens.