Pfizer reported fourth-quarter earnings and revenue that surpassed Wall Street estimates, driven by stronger-than-expected sales of its Covid products and the success of its ongoing cost-cutting initiatives.
The results mark a significant recovery for the pharmaceutical giant as it navigates declining Covid-related sales and broader industry challenges.
For the fourth quarter, Pfizer posted adjusted earnings per share of 63 cents, beating the 46 cents expected by analysts. Revenue came in at $17.76 billion, surpassing the $17.36 billion forecast.
Net income for the quarter reached $410 million, or 7 cents per share, compared to a net loss of $3.37 billion, or 60 cents per share, during the same period a year ago.
Shares of Pfizer rose 2% in premarket trading following the announcement.
Pfizer emphasized that its comprehensive cost-cutting program is on track to deliver approximately $4.5 billion in net savings by the end of 2025. The company aims to return to pre-pandemic operating margins in the coming years.
David Denton, Pfizer’s CFO, expressed optimism about the company’s financial trajectory, saying:
“We remain confident in our ability to return to pre-pandemic operating margins in the coming years.”
The company reaffirmed its 2025 revenue forecast of $61 billion to $64 billion and projected adjusted earnings per share between $2.80 and $3.00.
Pfizer’s earnings beat was partly fueled by robust sales of its Covid antiviral pill, Paxlovid, which brought in $727 million for the quarter. This was a significant recovery from the previous year’s revenue loss of $3.1 billion due to a return of doses to the US government. Analysts had anticipated $630.7 million in sales for the drug.
Revenue from Pfizer’s Covid vaccine totaled $3.4 billion, down $2 billion from the same period a year earlier. The decline was attributed to reduced global vaccinations and fewer contracted doses. However, the sales figure still exceeded analysts’ expectations of $3 billion.
Excluding Covid-related sales, Pfizer reported a 12% operational revenue increase. This growth was driven by several key products, including:
- Cancer Treatments: Approved oncology products from Pfizer’s Seagen acquisition contributed $915 million in revenue, up from $132 million in the same quarter of 2023.
- Cardiomyopathy Drugs: The Vyndaqel family generated $1.55 billion in sales, a 61% increase from the previous year.
- Blood Thinner Eliquis: Co-marketed with Bristol Myers Squibb, Eliquis posted $1.83 billion in revenue, exceeding the $1.67 billion analysts expected.
Despite the positive earnings report, Pfizer faces hurdles, including changes to Medicare pricing under the Inflation Reduction Act, which are expected to impact sales of Eliquis in 2026. Additionally, the company must contend with decreased demand for its RSV vaccine, Abrysvo, following CDC recommendations that narrowed its target market.
Looking ahead, Pfizer is focused on expanding its drug pipeline and potentially entering the lucrative weight-loss drug market with its experimental obesity pill, danuglipron.
With input from CNBC, Market Watch, and Bloomberg.
