Pfizer beats Q4 forecasts, posts weaker outlook
By Josh White
Date: Tuesday 04 Feb 2025
(Sharecast News) - Pfizer reported fourth-quarter and full-year 2024 results that exceeded analyst expectations, on Tuesday, driven by stronger-than-anticipated sales of its Covid-19 vaccine and antiviral pill, although shares were in the red as it posted a lower-than-expected outlook.
The New York-based pharmaceutical giant posted quarterly revenue of $17.8bn, a 21% operational increase from the prior year, surpassing projections of $17.3bn.
Adjusted earnings per share came in at 63 cents, well above the consensus estimate of 47 cents.
The unexpected strength in Covid-19 product sales contributed roughly $550m more than analysts had forecasted for the quarter.
However, full-year 2024 revenue of $63.6bn reflected just 7% operational growth, weighed down by declining sales of Comirnaty, its Covid-19 vaccine.
Excluding contributions from Comirnaty and Paxlovid, Pfizer's full-year revenue grew 12% operationally, reflecting demand for key drugs such as Eliquis, Vyndaqel, and Xtandi, as well as the addition of Seagen's oncology portfolio following its acquisition.
"2024 was a strong year of execution and performance for Pfizer in which we met or exceeded our strategic and financial commitments, strengthened our company and, most importantly, reached millions of patients with our medicines and vaccines," said chairman and chief executive officer Dr Albert Bourla.
"We made great progress with commercial execution and achieved growth across our product portfolio for full-year 2024, including $3.4bn in revenue from our legacy Seagen portfolio, as well as robust growth from the Vyndaqel family, Eliquis, Xtandi, Nurtec, and several other products across all categories.
"I'm excited for what's ahead and confident that we will enhance shareholder value as we sharpen our focus to improve the productivity of our research and development pipeline and advance the clear strategic priorities guiding our company in 2025."
Despite the strong quarterly performance, Pfizer reaffirmed its 2025 financial guidance, projecting revenue between $61bn and $64bn, slightly below analyst expectations.
The company also maintained its cost-cutting initiative, targeting $4.5bn in net savings by the end of 2025, as part of a broader effort to address concerns from investors regarding capital allocation following its windfall from Covid-19 products.
"We are pleased with the 12% operational revenue growth of Pfizer's non-Covid products in full-year 2024, demonstrating our continued focus on commercial execution," said chief financial officer David Denton.
"We successfully delivered on our $4bn net cost savings target from our ongoing cost realignment programme, and, as captured in our 2025 financial guidance, we have increased our overall savings target to approximately $4.5bn by the end of this year.
"In addition, we remain on track to deliver $1.5bn of net cost savings from the first phase of our manufacturing optimisation programme by the end of 2027, with initial savings expected in the latter part of 2025."
At 1006 EST (1506 GMT), shares in Pfizer were down 0.21% in New York, at $26.15.
Reporting by Josh White for Sharecast.com.
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