Pfizer reported better-than-expected results for Q1 2024, indicating resilience to a decline in sales of its COVID-19 vaccines and drugs. The company raised its full-year profit outlook thanks to cost cuts, strong sales of the pneumococcal vaccine Prevnar and a smaller-than-expected decline in sales of the Paxlovid COVID-19 drug. The better-than-expected results sent shares up about 1.5% in pre-trade.
Sales:
- Total revenue came in at $14.90 billion, down 19% year-over-year but beating analysts’ expectations of $13.92 billion.
- The decrease was mainly due to lower sales of the Comirnaty COVID-19 vaccine and Paxlovid.
- Excluding these two drugs, sales were up 11% year over year.
- Revenue from sales of Comirnaty’s vaccine came in at $354 million in the first quarter, missing analysts’ expectations of $496.5 million. However, Pfizer expects the vast majority of Comirnaty sales to be realized in the second half of the year, primarily in the fourth quarter.
- Sales of the pneumococcal vaccine franchise leader (Prevnar) came in at $1.69 billion, beating expectations of $1.66 billion.
- Sales of the Paxlovid vaccine reached $2.04 billion, beating expectations of $762.5 million.
Profitability:
- Non-GAAP earnings per share were $0.82, well above analysts’ expectations of $0.51.
- The company raised its full-year adjusted earnings per share outlook to $2.15-$2.35 (previously $2.21).
Other key points from the results report:
- Pfizer maintained its full-year sales outlook for Comirnat and Paxlovid at $8 billion.
- The company continues to implement a $4 billion cost savings program and internal restructuring.
- Pfizer recently bought oncology drug maker Seagen for $43 billion.
- The company recorded a favorable adjustment of $771 million in the quarter due to the renegotiation of a contract with the US government to return unused Paxlovid stock.
The company’s shares rose in pre-trade. It’s worth noting that the company is showing increasing resilience to a drop in sales related to the product’s COVID as the pandemic wanes. Additionally, the company’s dividend yield is 6.5%, making its stock attractive as it has fallen to its lowest level since 2013.
Source: XTB, xStation5
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Tags: Pfizer Shows Resilience Decline Sales COVID19 Vaccines Medicines Results
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