TLDR:
- Pfizer beats Q3 estimates with EPS of $1.06 vs expected $0.62
- Revenue reached $17.7B, exceeding $14.92B forecast
- Company raised 2024 guidance: EPS $2.75-$2.95, revenue $61-64B
- COVID-19 products performed well: Paxlovid sales $2.7B, Comirnaty $1.42B
- Pfizer faces pressure from activist investor Starboard Value amid turnaround efforts
In a notable turnaround for the pharmaceutical giant, Pfizer reported stronger-than-expected third-quarter results on Tuesday, leading to a 3.2% increase in its stock price during premarket trading, reaching $29.81.
The company posted earnings per share of $1.06 for the third quarter, substantially exceeding analyst expectations of $0.62. Revenue came in at $17.7 billion, surpassing the projected $14.92 billion.
COVID-19 products continued to contribute to Pfizer’s bottom line, despite previous concerns about declining demand. Paxlovid, the company’s COVID-19 treatment, generated sales of $2.7 billion, far exceeding analyst estimates of $456.40 million.
The COVID-19 vaccine Comirnaty, developed with BioNTech, brought in $1.42 billion, beating expectations of $870 million.
In response to these results, Pfizer has raised its full-year 2024 guidance. The company now expects earnings per share between $2.75 and $2.95, up from its previous forecast of $2.45 to $2.65. Revenue projections have been increased to $61-64 billion, compared to the earlier outlook of $59.5-62.5 billion.
The company has revised its expectations for combined Comirnaty and Paxlovid sales to $10.5 billion in 2024, an increase from the previous forecast of $8.5 billion.
Dr. Albert Bourla, Pfizer’s Chairman and CEO, noted strong performance across the company’s product portfolio. He highlighted exceptional growth in Oncology products, including revenue increases from Padcev, Xtandi, Lorbrena, and Braftovi/Mektovi.
Operating expenses showed better-than-expected control, with R&D costs at $2.56 billion, below the forecasted $3.06 billion. Selling, informational, and administrative expenses came in at $3.22 billion, under the estimated $3.42 billion.
The company continues to execute its strategic initiatives, including cost-cutting measures aimed at saving up to $5.5 billion by 2027. These efforts come as Pfizer works to offset the impact of declining pandemic-related product sales.
The $43 billion acquisition of cancer drugmaker Seagen represents part of Pfizer’s strategy to diversify its revenue streams. Excluding revenues from Comirnaty and Paxlovid but including Seagen’s contributions, the company maintains its projection of 9-11% operational revenue growth for 2024.
Regarding COVID-19 product demand, Bourla observed that Paxlovid demand has stabilized and appears to correlate with COVID-19 waves.
The positive results come as Pfizer faces pressure from activist investor Starboard Value, which has called for increased accountability from management regarding the company’s performance.
The stock’s premarket movement reflected investor confidence in these results, with shares climbing about 2% initially before reaching the 3.2% gain.
On an adjusted basis, Pfizer’s earnings outperformance was particularly notable, with the $1.06 per share result well above the average analyst estimate of 62 cents, according to LSEG data.
The latest financial results were released Tuesday morning, marking a positive turn for the pharmaceutical company as it continues its strategic transformation efforts.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
