Pfizer beats revenue estimates, raises profit outlook on cost cuts and strong non-Covid sales

Pfizer
on
Wednesday
reported
first-quarter
revenue
that
beat
expectations
and
hiked
its
full-year
profit
outlook,
benefitting
from
its
broad
cost-cutting
program
and
strong
sales
of
its
non-Covid
products.

The
company
now
expects
to
book
adjusted
earnings
of
$2.15
to
$2.35
per
share
for
the
fiscal
year,
up
from
its
prior
guidance
of
$2.05
to
$2.25
per
share.
Pfizer
reiterated
its
previous
revenue
forecast
of
$58.5
billion
and
$61.5
billion,
which
it
first
outlined
in
mid-December. 

The
pharmaceutical
giant
said
its
new
profit
guidance
accounts
for
its “confidence”
in
its
business
and
its
ability
to
slash
costs.
Pfizer
said
it
is
on
track
to
deliver
at
least
$4
billion
in
savings
by
the
end
of
the
year.

Pfizer’s
first-quarter
results
also
benefitted
from
a
smaller-than-feared
drop
in
sales
for
its
Covid
antiviral
pill
Paxlovid.

The
results
come
as
Pfizer
tries
to
regain
its
footing
after
the
rapid
decline
of
its
Covid
business.
Demand
for
those
products
has
plunged
to
new
lows,
and
they
transitioned
to
the
commercial
market
in
the
U.S.
last
year. As
revenue
suffers,
the
company
is
trying
to
improve
its
bottom
line
and
shore
up
investor
confidence
through
its
cost
cuts
and
a

renewed
focus
on
treating
cancer
following
its

$43
billion
acquisition
of
Seagen
last
year. 

Here’s
what
Pfizer
reported
for
the
first
quarter
compared
to
what
Wall
Street
was
expecting,
based
on
a
survey
of
analysts
by
LSEG: 

• 
  Earnings
  per
  share:
  82
  cents
  adjusted,
  it
  was
  not
  immediately
  clear
  if
  it
  is
  comparable
  to
  the
  52
  cents
  expected.
• 
  Revenue:
  $14.88
  billion
  vs.
  $14.01
  billion
  expected.

Pfizer
recorded
first-quarter
revenue
of
$14.88
billion,
down
20%
from
the
same
period
a
year
ago,
primarily
due
to
the
plunge
in
sales
of
its
Covid
products.

For
the
first
quarter,
Pfizer
booked
a
net
income
of
$3.12
billion,
or
55
cents
per
share.
That
compares
to
a
net
income
of
$5.54
billion,
or
97
cents
per
share,
during
the
same
period
a
year
ago. 

Excluding
certain
items,
the
company
posted
earnings
per
share
of
82
cents
for
the
quarter. 

Notably,
the
company
said
its
adjusted
and
non-adjusted
profit
got
an
11
cents
per
share
boost
from
a
$771
million
final
adjustment
to
the
estimated
$3.5
billion
revenue
reversal
recorded
in
the
fourth
quarter,
reflecting
5.1
million
courses
of
Paxlovid
returned
by
the
U.S.
government
by
Feb.
29. 

Paxlovid
booked
$2
billion
in
revenue
for
the
quarter,
down
50%
from
the
same
period
a
year
ago.
That
decline
was
mainly
due
to
lower
deliveries
around
the
world
as
the
product
transitioned
to
commercial
market
sales,
along
with
lower
demand
in
China. 

Meanwhile,
Pfizer’s
Covid
vaccine
generated
$354
million
in
sales,
down
88%
from
the
year-earlier
period.
That
drop
was
also
driven
by
lower
contract
deliveries
and
demand
in
international
markets,
as
well
as
lower
U.S.
volumes,
partly
reflecting
the
seasonality
of
demand
for
vaccinations.

Shares
of
Pfizer
fell
roughly
40%
in
2023
as
demand
for
Covid
treatment
Paxlovid
and
its
vaccine
against
the
virus
dried
up,
causing
the
company
to
dramatically

slash
its
full-year
revenue
forecast
and
record
multibillion-dollar
charges
related
to

inventory
write-offs. Pfizer
also
disappointed
the
street
with
an
underwhelming
launch
of
a
new
RSV
shot
and
a
twice-daily
weight
loss
pill
that
fell
short
in
clinical
trials. 

Excluding
Covid
products,
Pfizer
said
revenue
for
the
first
quarter
rose
11%.

The
company
said
that
growth
was
partly
fueled
by
Seagen’s
products,
which
brought
in
$742
million
in
revenue
for
the
quarter.
That
includes
a
targeted
treatment
for
bladder
cancer
called
Padcev
and
another
drug
that
treats
certain
lymphomas. 

Pfizer
completed
its
acquisition
of
the
drugmaker
in
December. 

The
company
said
revenue
also
got
a
boost
from
strong
sales
of
Vyndaqel
drugs,
which
are
used
to
treat
a
certain
type
of
cardiomyopathy,
a
disease
of
the
heart
muscle.
Those
drugs
booked
$1.14
billion
in
sales,
up
66%
from
the
first
quarter
of
2024.

Analysts
surveyed
by
FactSet
had
expected
that
group
of
drugs
to
rake
in
$909.1
million
for
the
quarter. 

Pfizer
also
said
its
blood
thinner
Eliquis,
which
is
co-marketed
by
Bristol
Myers
Squibb,
helped
drive
revenue
growth.
The
drug
posted
$2.04 billion
in
revenue
for
the
quarter,
up
9%
from
the
same
period
a
year
ago. 

Analysts
had
expected
Eliquis
to
rake
in
$1.95
billion
in
sales,
according
to
FactSet.

A
group
of
shots
to
protect
against
pneumococcal
pneumonia
brought
in
$1.69
billion
in
sales
for
the
first
quarter,
up
6%
from
the
year-ago
period.
That
growth
was
driven
by
uptake
among
children
in
the
U.S.
and
government
purchases,
among
other
factors. 

Analysts
had
expected
that
group
of
shots
to
book
$1.63
billion
in
sales
for
the
quarter,
FactSet
estimates
said.

Meanwhile,
Pfizer’s
new
vaccine
against
respiratory
syncytial
virus,
or
RSV,
saw
$145
million
in
revenue,
primarily
driven
by
uptake
among
older
adults.
The
shot,
known
as
Abrysvo,
entered
the
market
during
the
third
quarter
for
seniors
and
expectant
mothers
who
can
pass
on
protection
to
their
fetuses. 

The
vaccine
fell
short
of
analysts’
estimate
of
$360
million
in
revenue
for
the
first
quarter,
according
to
FactSet.

Pfizer’s
medication
for
certain
breast
cancers,
Ibrance,
generated
$1.05
billion
in
revenue
for
the
period,
down
8%
from
the
same
period
a
year
ago.
The
decline
came
as
the
drug
faced
competitive
pressure
and
price
decreases
in
certain
international
markets.  

Revenue
from
that
drug
was
roughly
in
line
with
what
analysts
were
expecting.