By Swissquote Analysts
Pfizer Expects Drop in Revenue as Vaccine Demand Wanes
Topic of the day
Pfizer Inc. expects revenue to drop by as much as a third in 2023 as demand for Covid-19 products continues to slump. The New York-based drug company said that it is projecting revenue to be between $67 billion and $71 billion this year after jumping 23% to $100.3 billion in 2022. Stripping out Covid-19 products, Pfizer expects its 2023 top line to grow 7% to 9%. The company said revenue from Covid-19 products is slated to reach a low point this year due to a significant government stockpile on hand, and then rebound in 2024. Fourth-quarter revenue was up 2% at $24.29 billion, buoyed by growth in its primary care business as demand for Covid-19 vaccines dropped. Analysts polled by FactSet had been expecting $24.39 billion. The company touted 10 medicines or vaccines that generated more than $1 billion in revenue each, although foreign exchange reduced its top line by 7%. The pharma giant posted a profit of $5 billion, or 87 cents a share, compared with $3.39 billion, or 59 cents a share, last year. Adjusted earnings, which strip out the impact of one-time items, came in at $1.14 a share, above analyst expectations of $1.05 a share.
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The Switzerland stock market ended notably lower on Tuesday, weighed down by data showing a drop in Swiss retail sales, and amid caution ahead of interest rate decisions by the Federal Reserve, the Bank of England and the European Central Bank. The benchmark SMI ended down 93.86 points or 0.82% at 11,285.78. The index dropped to a low of 11,238.81 in early afternoon trades. UBS Group shares ended lower by 2.07% despite the lender reporting higher earnings in the fourth quarter. UBS said its net profit attributable to shareholders was $1.65 billion, up 22.6% from last year's $1.35 billion. Earnings per share were $0.50, higher than $0.38 a year ago. Sonova ended 3.8% down. Lonza Group ended lower by about 2.65%. Partners Group, Richemont, Logitech, Swiss Life Holding and Roche Holding declined 1 to 1.4%. In the Mid Price Index, AMS ended lower by 4.37%. Tecan Group lost nearly 3%. Galenica Sante ended nearly 2% down. Schindler Ps, Straumann Holding, Bachem Holding, Shindler Holding, Julius Baer, Helvetia, Swiss Prime Site and Adecco lost 1.2 to 1.7%. Zur Rose rallied 3.75%. Belimo Holding, SGS and Kuehne & Nagel edged up marginally.
European stocks closed broadly lower on Tuesday as the mood remained cautious and investors largely refrained from indulging in any significant buying ahead of interest rate decisions from the Federal Reserve, the Bank of England and the European Central Bank. The pan European Stoxx 600 ended 0.26% down. The U.K.'s FTSE 100 drifted down 0.17%, while Germany's DAX and France's CAC 40 both edged up slightly. Switzerland's SMI ended 0.82% down. Among other markets in Europe, Austria, Belgium, Poland, Portugal and Russia closed higher. Czech Republic, Denmark, Finland, Greece, Ireland, Spain and Turkiye ended weak, while Netherlands, Norway and Sweden settled flat. In the UK market, Johnson Matthey rallied more than 4%. Diageo gained 3.2%. Compass Group, Haleon and Coca-Cola HBC gained 1 to 1.3%. Ocado Group ended 5.3% down. Rolls-Royce Holdings, BT Group, M&G, Weir Group, Fresnillo, United Utilities, Smiths Group, Anglo American Plc, Rentokil Initial, Glencore, Melrose Industries, Standard Chartered and AstraZeneca lost 1 to 3%. In Paris, ArcelorMittal, Saint Gobain, Alstom, TotalEnergies, Thales, Air Liquide, Vivendi and STMicroElectronics lost 1 to 2%. Societe Generale, Stellantis and Pernod Ricard gained 2 to 2.6%. Dassault Systemes, Renault, Essilor, Michelin and BNP Paribas advanced 1 to 1.5%. In the German market, BMW surged 1.8%. Porsche gained about 1.5% and SAP advanced 1.05%. Fresenius Medical Care, Sartorius, Merck, Fresenius, BASF, Daimler and Allianz ended notably lower.
U.S. stock indexes rose Tuesday to finish January with strong monthly gains, a reprieve for investors after a bruising 2022. The Nasdaq Composite jumped 190.74 points, or 1.7%, to 1118.07. The tech-focused index gained 11% in January, its best start to the year since January 2001, when it gained 12%. The S&P 500 rose 58.83 points, or 1.5%, to 4076.60, while the Dow Jones Industrial Average added 368.95 points, or 1.1%. to 938.79. The indexes added 6.2% and 2.8%, respectively, this month. Many investors are hoping the old Wall Street saying that "as goes January, so goes the year," proves true. History is in their favor: The Nasdaq has averaged a 14% rise through the rest of the year after gaining 10% or more in January, according to Dow Jones Market Data. Of course, the dotcom bubble of 2001 was a different story -- the index fell 30% in the following 11 months. Shares of Caterpillar fell $9.21, or 3.5%, to $252.29 after the construction- and mining-equipment maker's profit missed expectations. Shares of Exxon Mobil rose $2.45, or 2.2%, to $116.01 after posting record annual profits. While McDonald's said price increases and promotions boosted sales, warnings that inflation will continue to pressure its business helped drag shares $3.49, or 1.3%, lower to $267.40 per share. General Motors Co. posted a $2 billion net profit for the fourth quarter, a surprisingly strong result as factory output rebounded from supply-chain troubles and pricing held strong despite mounting consumer pressures. The Detroit auto maker also said Tuesday it is investing $650 million in a mining company to jointly develop a lithium-extraction project in Nevada. It is the latest move by GM and other auto makers to lock in battery resources to support electric-vehicle sales targets in coming years.
After the losses of the previous day, the Asian stock markets stabilized on Wednesday. In China, the Shanghai Composite and HSI in Hong Kong are holding their ground and are slightly firmer. In Shanghai, semiconductor and insurance stocks are in demand. Real estate stocks, on the other hand, are among the weaker shares, according to traders. The big bailout of the ailing real estate sector is still a long time coming, they say. China Vanke is down 0.9 per cent and Poly Developments & Holdings is down 1.1 per cent.
In U.S. bond markets, Treasurys have soared while yields have dropped to reflect Wall Street's bets that rates are nearing their peak.
UBS raises the Dassault target to EUR 200 (150) – Buy
UBS lowers Thales to Neutral (Buy) – Target EUR 135
UBS lowers Nokia to Neutral (Buy) – Target EUR 4.60 (5.40)
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