Pfizer (PFE  ) delivered Q1 earnings that topped Wall Street's expectations for the top and bottom-line. Revenue from its coronavirus vaccine was a major contributor to its strong results.

The company's vaccine breakthrough along with Moderna (MRNA  ) has been a game-changer in terms of the short amount of time it took to develop the vaccine. Additionally, while the vaccine will help the company make billions in profits over the next couple of years, it will certainly create trillions in value for the world.

Inside the Numbers

In Q1, Pfizer generated $0.93 in earnings per share, beating expectations of $0.77 per share. Revenue beat at $14.6 billion vs $13.5 billion consensus expectations.

The company also announced its plans to file for full U.S. approval for its Covid-19 vaccine at the end of this month. If it gets U.S. Food and Drug Administration (FDA) approval, then Pfizer would be able to directly market the shot to consumers. This shot generated $3.5 billion in revenue in Q1.

In terms of its outlook, Pfizer increased revenue guidance to $26 billion an increase from its previous forecast of $15 billion. It expects profit margins on the vaccine to be in the 20% range on a pretax basis. The company believes that coronavirus booster shots may be necessary for certain populations on an annual basis.

Other parts of Pfizer's business including oncology, internal medicine, hospital, and rare disease grew at a double-digit rate in Q1, helped by the economy reopening.

Stock Price Outlook

It's not surprising at all that Pfizer's stock and financials have exhibited such strong performance largely due to the vaccine. The whole point of capitalism is to efficiently and effectively reward people and companies that create value. After all, Pfizer is only capturing a small portion of the value it is creating for the world as it slowly returns to normal.

If Pfizer is correct and annual booster shots are required, then it could be a product that leads to recurring revenue. Despite all this good news, Pfizer's shares remain cheap by many metrics.

The company has a forward PE of 12 which is significantly cheaper than the market average. Further, the company pays a healthy 3.9% dividend and has above-average profit margins as well.