Pfizer Q4 Profit Tops View; Sees Weak FY23 Results, Below Market

pfizer jan31 lt

Drug major Pfizer Inc. reported Tuesday higher earnings in its fourth quarter, above market estimates, and an all-time high revenues in its fiscal 2022. Meanwhile, the company projects sharply lower adjusted earnings and revenues in its fiscal 2023, below Wall Street estimates, reflecting projected decline for COVID-19 products.

In pre-market activity on the NYSE, Pfizer shares were losing around 3 percent to trade at $42.38.

David Denton, Chief Financial Officer and Executive Vice President, stated, "Looking forward to 2023, we expect strong topline growth of 7 percent to 9 percent excluding our COVID-19 products and anticipated foreign exchange impacts. We are also increasing our investments behind our launch products and pipeline in order to help realize our growth goals for 2023 and beyond."

For fiscal 2023, the company projects adjusted earnings per share between $3.25 and $3.45, and revenues between $67.0 billion and $71.0 billion.

The company projects a 48 percent to 51 percent drop from last year's adjusted earnings of $6.58 per share, and 29 percent to 33 percent drop from last year's revenues of $100.33 billion.

On average, 20 analysts polled by Thomson Reuters expect earnings of $4.44 per share for the year on revenues of $74.13 billion. Analysts' estimates typically exclude special items.

The anticipated decline in earnings are primarily driven by anticipated lower revenues from COVID-19 products, higher spending to support anticipated near-term launches and greater investments in certain late-stage pipeline projects.

Further, revenues are expected to drop entirely due to expected revenue declines for Pfizer's COVID-19 products.

For fiscal 2023, revenues excluding COVID-19 products are expected to grow 7 percent to 9 percent operationally.

Pfizer's annual revenue guidance for COVID-19 vaccine Comirnaty is around $13.5 billion, down 64 percent from 2022, and Paxlovid is around $8 billion, down 58 percent year-over-year.

Revenues from COVID-19 products are expected to grow in 2024 after reaching a low point in 2023 due to significant Government supply on hand to start the year.

As of January 31, Pfizer's remaining share repurchase authorization is $3.3 billion.

In the fourth quarter, Pfizer's net income totaled $5.00 billion, up 47 percent from $3.39 billion a year ago. Earnings per share grew 48 percent to $0.87 from $0.59 last year.

Adjusted earnings were $6.55 billion or $1.14 per share for the period, compared to $4.54 billion or $0.79 per share a year ago.

Analysts expected the company to earn $1.05 per share for the quarter.

The company's revenue for the quarter rose 1.9 percent to $24.29 billion from $23.84 billion last year. Analysts expected revenues of $24.32 billion for the quarter. Operational revenue growth was 13 percent.

According to the company, the fourth-quarter performance was highlighted by strong operational growth from Paxlovid, Prevnar 20, Comirnaty, Vyndaqel and Eliquis, as well as the inclusion of Nurtec ODT/Vydura and Oxbryta.

Global Biopharmaceuticals revenues increased 2 percent from last year to $23.92 billion. A 7 percent rise in Primary Care revenue was partly offset by 11 percent decline in Specialty Care and 7 percent decline in Oncology revenues. Pfizer CentreOne revenues were down 4 percent.

In the quarter, Comirnaty revenues in emerging markets were down 81 percent operationally, primarily due to lower demand for COVID-19 vaccines. Meanwhile, Comirnaty revenues in developed markets went up 67 percent operationally, driven primarily by the resumption of deliveries of the Omicron-adapted bivalent booster.

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