Pfizer (PFE) earnings Q2 2024

Pfizer on Tuesday reported second-quarter revenue and adjusted earnings that blew past expectations and raised its full-year outlook, benefiting from its broad cost-cutting program, better-than-expected sales of its Covid antiviral pill, Paxlovid, and robust non-Covid product sales.

The corporate now expects to book adjusted earnings of $2.45 to $2.65 per share for the fiscal yr, up from its previous guidance of $2.15 to $2.35 per share. 

Pfizer also hiked its revenue outlook to a variety of $59.5 billion to $62.5 billion, up from a previous revenue forecast of between $58.5 billion and $61.5 billion. That features roughly $5 billion in expected revenue from its Covid vaccine and $3.5 billion from Paxlovid.

The pharmaceutical giant said its higher outlook reflects its strong performance in the primary half of the yr and its confidence within the “underlying strength” of its business. Notably, Pfizer on Tuesday posted its first quarter of topline revenue growth for the reason that fourth quarter of 2022, when its Covid revenues peaked.

“This quarter’s results are a testament to the performance of our industrial business and our prudent approach to improving our cost base,” Pfizer CFO Dave Denton said during an earnings call on Tuesday.

Still, share of the corporate fell greater than 1% after the outcomes.

Here’s what the corporate reported for the second quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: 

• Earnings per share: 60 cents adjusted vs. 46 cents expected.
• Revenue: $13.28 billion vs. $12.96 billion expected.

The outcomes come as Pfizer scrambles to stabilize its business and win back Wall Street’s favor following the rapid decline in demand for its Covid products. Demand for its vaccine and Paxlovid plunged and transitioned to the industrial market within the U.S. last yr because the world emerged from the pandemic. 

As revenue dried up, Pfizer in October launched a broad cost-cutting push that goals to deliver a minimum of $4 billion in savings by the tip of 2024. The corporate has since announced a separate multiyear plan to slash costs, with the primary phase of the hassle slated to deliver $1.5 billion in savings by 2027. 

“We do expect that every one these [cost-cutting] investments…are all designed to enhance operating margins to get us back to pre-pandemic levels within the near future,” Denton told investors.

Pfizer can be zeroing in on treating cancer after its whopping $43 billion acquisition of Seagen last yr. 

The corporate booked second-quarter net income of $41 million, or 1 cent per share. That compares with net income of $2.33 billion, or 41 cents per share, throughout the same period a yr ago. Excluding certain items, the corporate posted earnings per share of 60 cents for the quarter.

Pfizer recorded revenue of $13.28 billion for the second quarter. That’s up 2% from the identical period a yr ago.

The corporate pointed to growth from acquired drugs, recently launched treatments and other key products, which helped offset the drop in sales from its Covid business.

Paxlovid brought in $251 million in sales for the quarter, up 76% from the year-earlier period. That growth is principally due to increased infection rates and demand in certain international markets throughout the quarter and as a consequence of favorable comparisons from the year-earlier period when Paxlovid recorded no U.S. sales ahead of its transition to the industrial market.

The segment results were higher than the $206.1 million in sales that analysts were expecting, based on estimates compiled by StreetAccount.

The corporate’s Covid shot booked $195 million in revenue, down 87% from the identical period a yr ago.

That drop was driven by lower contract deliveries and demand in international markets, and reflects the seasonality of demand for vaccinations.

Analysts expected $195 million in sales for the drug, based on StreetAccount.

Excluding Covid products, Pfizer said revenue for the second quarter rose 14% on an operational basis.

The corporate said that growth was partly fueled by Seagen’s approved cancer products, which brought in $845 million in revenue for the quarter. That features $394 million from a targeted treatment for bladder cancer called Padcev and $279 million from Adectris, one other drug that targets certain lymphomas. 

Pfizer accomplished its acquisition of Seagen in December. 

“We’re pleased with the continued success of our integration,” Pfizer CEO Albert Bourla said on the decision, adding that the acquired products are “contributing meaningfully to our revenue.”

Revenue also got a lift from strong sales of Pfizer’s Vyndaqel drugs, that are used to treat a certain variety of cardiomyopathy, a disease of the center muscle. Those drugs booked $1.32 billion in sales, up 69% from the second quarter of 2023.

Analysts had expected that group of medication to rake in $1.10 billion for the quarter, based on estimates from StreetAccount.  

Pfizer said its blood thinner Eliquis, which is co-marketed by Bristol Myers Squibb, also helped drive revenue growth throughout the period. The drug posted $1.88 billion in revenue for the quarter, up 7% from the year-earlier period. 

That’s in keeping with analysts expectations, based on StreetAccount. 

Sales of Eliquis could take successful in 2026, nevertheless, when a latest price for the drug goes into effect for certain Medicare patients following negotiations with the federal government. Those price talks, a key provision of President Joe Biden’s Inflation Reduction Act, will end firstly of August.