Health

Pfizer Exceeds Earnings Estimates, Boosts Profit Forecast

May 1, 2024 1 min read

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Pfizer Inc. reported higher-than-expected first-quarter profits, attributing the results to cost reductions and robust sales of its pneumonia and respiratory virus vaccines. The pharmaceutical giant posted an adjusted profit of 82 cents per share, surpassing the average analyst estimate of 52 cents. The performance was also bolstered by better-than-anticipated sales of cancer treatment Padcev, a recent addition to Pfizer's portfolio through its acquisition of Seagen.

Following a smaller-than-expected decline in sales of its COVID-19 antiviral treatment, Pfizer has raised its profit forecast for 2024 to a range of $2.15 to $2.35 per share, up from the prior forecast of $2.05 to $2.25 per share. This comes despite a 50% reduction in sales of Paxlovid, the company's COVID-19 antiviral, as Pfizer continues to expect $8 billion in combined sales from its COVID-19 products.

The company's share price responded positively to the news, climbing approximately 1% to $25.89 in premarket trading. This rise comes after a significant 11% drop in share value earlier in the year, largely due to investor concerns over Pfizer's post-pandemic growth trajectory. In an effort to address these concerns, Pfizer has implemented a $4 billion cost-cutting plan and internal restructuring, and has made a strategic $43 billion acquisition of cancer drugmaker Seagen.

Despite the earlier decline in demand for its COVID-19 treatments, Pfizer's revenue for the first quarter reached $14.9 billion, exceeding projections. The company also emphasized the strong performance of its non-COVID product portfolio, signaling continued revenue growth from recent commercial launches and acquired products. For the full year 2024, Pfizer now forecasts earnings per share ranging from $10.5 to $61.5 billion, higher than the anticipated $60 billion.

#coronavirus #finance #markets

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