The past three years have been disappointing for Pfizer (NYSE:PFE): The drugmaker’s revenues, profits and stock prices have generally moved in the wrong direction. It wasn’t all bad, though: Pfizer has made some progress on the clinical and regulatory fronts with several brand new approvals.
And now the company’s financial results are improving. Let’s take a look at Pfizer’s latest quarterly update and decide if the stock is worth investing in today.
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Pfizer’s earnings went south as coronavirus-related revenues fell off a cliff. That was good news for everyone else – it was a sign of a waning pandemic. However, COVID-19 is here to stay, and in the third quarter, Pfizer’s sales in this market helped turn things around.
Revenues reached $17.7 billion, up 31% year-over-year, which is more than excellent for a pharmaceutical giant. The coronavirus drug Paxlovid contributed $2.7 billion to sales, up from just $202 million in the third quarter of 2023. Comirnaty, Pfizer’s famed vaccine, saw sales grow 9% year over year to $1.4 billion .
While Pfizer’s acquisition of Seagen in December 2023 also played a role, this quarter once again highlights the continued importance of Pfizer’s work on COVID-19. In fact, the drugmaker has raised its fiscal 2024 revenue and earnings per share (EPS) expectations in anticipation of better sales of these products.
In announcing its second-quarter results, Pfizer said it expected revenue in the range of $59.5 billion to $62.5 billion and adjusted earnings per share of $2.45 to $2.65. Those were also upward revisions. Now the company expects revenue between $61 billion and $64 billion and earnings per share between $2.75 and $2.95.
Pfizer’s revenue from its coronavirus portfolio will be somewhat cyclical; In autumn and winter, people are more likely to be vaccinated. However, the company’s prospects extend far beyond this one product line. It has an extensive portfolio and deep pipeline with more than 100 programs.
Like many other drug developers, Pfizer hopes to carve out a niche in the weight loss field. Management has said the oral obesity drug could be the second drug of its kind to hit the market. There is a need for oral solutions because the current leaders in this field, including Wegovy and Zepbound, are administered via weekly injections.
