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Pfizer It reported first-quarter revenue on Wednesday that beat estimates and raised its full-year profit forecast, benefiting from its broad cost-cutting plan and strong sales of non-COVID products.
The company now expects adjusted earnings per share for the fiscal year of $2.15 to $2.35, up from previous guidance of $2.05 to $2.25 per share.
Pfizer reiterated its previous revenue forecasts of $58.5 billion and $61.5 billion, first raised in mid-December.
The pharmaceutical giant said the new profit guidance reflected its “confidence” in its business and its ability to cut costs. Pfizer said it expects to save at least $4 billion by the end of the year.
The results come as Pfizer tries to regain its footing after a rapid decline in business due to the coronavirus pandemic. Demand for these products has hit new lows and turned to the U.S. commercial market last year. With revenue taking a hit, the company is trying to boost profits and bolster investor confidence by cutting costs and refocusing on cancer treatments after acquiring Seagen for $43 billion last year.
Pfizer’s first-quarter report compared with Wall Street expectations, according to a survey of analysts by London Stock Exchange Group (LSEG):
- Earnings per share: The adjusted price was 82 cents, and it’s unclear whether it matched expectations of 52 cents.
- income: US$14.88 billion, compared with US$14.01 billion expected.
Pfizer’s first-quarter revenue was $14.88 billion, down 20% year-on-year, mainly due to a plunge in sales of its COVID-19 products.
Pfizer’s first-quarter net profit was $3.12 billion, or 55 cents per share. This compares with net income of $5.54 billion, or 97 cents per share, in the same period last year.
Excluding certain items, the company earned 82 cents per share for the quarter.
Notably, the company said its adjusted and unadjusted profit increased 11 cents per share, reversing its forecast for fourth-quarter revenue of $3.5 billion from a final adjusted $771 million, reflecting its resilience. The coronavirus drug Paxlovid has returned 5.1 million treatment courses.
Pfizer shares have fallen about 40% in 2023 as demand for Covid treatment Paxlovid and its vaccine dried up, leading the company to slash its full-year revenue forecast and hit billions of dollars in charges related to inventory write-offs. Pfizer’s new RSV vaccine and twice-daily diet pill also performed disappointingly, falling short of standards in clinical trials.
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