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Pfizer Third-quarter revenue and adjusted profit reported on Tuesday beat expectations as the company’s Covid vaccine and antiviral drug Paxlovid helped boost sales.
The pharmaceutical giant also raised its full-year outlook and now expects adjusted earnings of $2.75 to $2.95 per share, up from its previous guidance of $2.45 to $2.65 per share.
Pfizer now expects revenue between $61 billion and $64 billion, up from its previous forecast of $59.5 billion to $62.5 billion. That includes about $5 billion in expected revenue from Covid vaccines and $5.5 billion in expected revenue from Paxlovid.
What’s this The company’s third quarter financial report Compared to Wall Street expectations, according to a survey of analysts by LSEG:
- Earnings per share: Adjusted $1.06, expected 62 cents
- income: $17.7 billion vs. $14.95 billion expected
The company’s third-quarter net income was $4.47 billion, or 78 cents per share. That compares with a net loss of $2.38 billion, or 42 cents per share, in the same period last year. Excluding certain items, including restructuring charges and costs related to intangible assets, the company reported earnings per share of $1.06 for the quarter.
Pfizer reported third-quarter revenue of $17.7 billion, a 31% increase from the same period last year.
It’s a crucial quarterly report for Pfizer, which is cutting costs and trying to recover from a rapid decline in its business and stock price over the past two years due to the coronavirus pandemic. The drugmaker’s shares are now about half of their pandemic highs, giving it a market value of about $163 billion.
Pfizer is also grappling with proxy battle It was launched by activist investor Starboard Value, which holds an approximately $1 billion stake in the pharmaceutical company.
Jeff Smith, Starboard Managing Member argue Pfizer failed to capitalize on the windfall from its COVID-19 product, losing tens of billions of dollars in market value in the process. Smith noted that he believes management has not invested enough in research and development, and that large acquisitions have yet to bear fruit for the troubled company.
Smith has called for sweeping reforms to Pfizer, claiming the company needs to be more stringent in its investments.
Meanwhile, Pfizer previously said it expected to save at least $4 billion by the end of this year. The company announced a multi-year plan to cut costs in May, with the first phase of the effort expected to Save $1.5 billion By 2027.
Paxlovid’s sales for the quarter were $2.7 billion, up from $202 million in the same period last year.
The growth is largely attributable to strong demand, especially in the United States during the latest wave of the virus outbreak. Also helping the company was a contract for a one-time delivery of 1 million Paxlovid courses to the federal government’s national stockpile in the third quarter, which accounted for $442 million in revenue.
Those results were higher than analysts’ expectations for Paxlovid’s sales of $707.7 million, according to estimates compiled by StreetAccount.
The company’s Covid vaccine revenue was $1.42 billion, up 9% from the same period last year.
Analysts expect sales of the vaccine to be $1.04 billion, according to StreetAccount.
This story is developing. Please check back for updates.
