Pfizer Lifts Full-year 2024 Earnings Outlook Following First-quarter Beat
$PFE
Pfizer Inc. (NYSE:PFE), a prominent global pharmaceutical company, has recently updated its financial outlook for the year 2024, following a robust performance in the first quarter. The company, known for its comprehensive portfolio of prescription drugs and vaccines, reported a revenue of $14.9 billion for the first quarter, marking a decrease of 20% year-over-year. The decline, which was primarily due to reduced sales of COVID-19 related products, the company’s adjusted earnings per share (EPS) of $0.82 exceeded expectations, surpassing the analyst estimate of $0.52.
The decrease in revenue was largely attributed to the diminished demand for COVID-19 vaccines and treatments, such as Comirnaty and Paxlovid. However, excluding these products, Pfizer achieved an 11% operational growth in its non-COVID portfolio, demonstrating resilience and adaptability in its core business areas. This growth was notably supported by increased revenue from legacy Seagen products and robust sales from the Vyndaqel family and Eliquis, which benefited from market expansion and higher adoption rates.
Pfizer’s operational efficiency was further highlighted by its cost management strategies. The company is on track to deliver at least $4 billion in net cost savings by the end of 2024, as part of its ongoing cost realignment program. This initiative is expected to bolster the company’s financial health and support sustained growth.
In addition to financial metrics, Pfizer has made significant strides in its product offerings. The first quarter saw increased revenue contributions from several recently launched and acquired products. The company’s oncology and vaccine products, in particular, showed strong performance, contributing to the non-COVID portfolio’s growth. Pfizer’s Chairman and CEO, Dr. Albert Bourla, emphasized the strength of the company’s non-COVID product portfolio, which includes key in-line brands that have shown robust year-over-year growth.
Looking ahead, Pfizer has raised its full-year 2024 revenue guidance to between $58.5 to $61.5 billion and adjusted its diluted EPS guidance to $2.15 to $2.35. This updated guidance reflects the company’s confidence in its ongoing business strength and effective cost management. The positive adjustment in earnings outlook is also indicative of Pfizer’s improving visibility towards achieving its cost savings targets and the continued strength of its underlying business.
Furthermore, Pfizer continues to prioritize strategic investments in research and development (R&D) and business development, with approximately $2.6 billion allocated in the first quarter alone. These investments are crucial for the company’s long-term growth and innovation in pharmaceutical development. Not engaging in share repurchases during the quarter, Pfizer returned $2.4 billion to shareholders through dividends, underscoring its commitment to shareholder returns.
Pfizer’s first-quarter results for 2024 reflect a resilient business model capable of navigating market volatilities. With strategic realignments and operational discipline, the company is well-positioned to drive sustainable long-term growth. As the firm continues to adapt to the shifting healthcare landscape, its focus on broad-based growth across its diverse portfolio will be pivotal in maintaining its status as a leader in the global pharmaceutical industry.
