Jamie Spencer
Pfizer (PFE) reported fourth-quarter earnings on Tuesday that surpassed analyst expectations, driven by higher-than-expected demand for its Covid products and ongoing cost-cutting efforts.
Q4 Earnings Highlights
- Adjusted EPS: $0.63 vs. $0.46 expected
- Revenue: $17.76 billion vs. $17.36 billion expected
- Net income: $410 million, up from a $3.37 billion net loss a year ago
- Full-year 2025 revenue forecast: $61B – $64B
Despite the earnings beat, Pfizer stock dipped slightly in early trading as investors focused on long-term revenue growth and its drug pipeline.
Covid Products Exceed Estimates
Sales of Paxlovid, Pfizer’s antiviral Covid pill, totaled $727 million, exceeding the expected $630.7 million. The company’s Covid vaccine generated $3.4 billion in revenue, surpassing the projected $3 billion.
Growth in Non-Covid Drugs
Excluding Covid-related sales, Pfizer’s revenue increased 12%, led by:
- Seagen’s cancer drugs: $915 million (vs. $132M in Q4 2023)
- Vyndaqel (heart disease treatment): $1.55 billion (+61% YoY)
- Eliquis (blood thinner): $1.83 billion (+14% YoY)
However, sales of RSV vaccine Abrysvo declined 62% YoY to $198 million, missing expectations due to reduced vaccination recommendations for older adults.
Cost-Cutting and Future Outlook
Pfizer reaffirmed its $4.5 billion cost-cutting program and its 2025 earnings guidance of $2.80 – $3.00 per share. Investors are also watching Pfizer’s experimental obesity pill, danuglipron, as the company seeks to enter the booming weight-loss drug market.
The company also dodged a proxy battle with activist investor Starboard Value, which holds a $1 billion stake in Pfizer.
