Pfizer Surprises With Q4 Profit Despite Muted COVID Products Demand, Sticks To 2024 Guidance

Tuesday, Pfizer Inc PFE reported a Q4 adjusted EPS of $0.10 versus a consensus loss of $(0.22). The company reported fiscal year 2023 adjusted EPS of $1.84, down 72% year-on-year, significantly impacted by one-time events.

The company reported a 41% decline in Q4 sales to $14.25 billion, down from $24.29 billion a year ago, almost in line with the consensus of $14.21 billion.

Fourth-quarter 2023 Comirnaty revenues declined $6.1 billion, or 54% Y/Y, driven by lower U.S. government contracted deliveries following the transition to traditional U.S. commercial market sales and lower contracted deliveries and demand in international markets.

Excluding contributions from Comirnaty and Paxlovid, company revenues grew $934 million, or 8%, operationally.

Fourth-quarter 2023 Paxlovid revenues declined $5.0 billion to $(3.1) billion due to a non-cash revenue reversal of $3.5 billion, of which a portion was associated with sales recorded in 2022, related to the expected return of an estimated 6.5 million treatment courses of Emergency Use Authorization-labeled U.S. government inventory.

Albert Bourla, Chairman and CEO, stated: “We are encouraged by the strong performance of our non-COVID products in the fourth quarter of 2023, including significant contributions from new launches and robust year-over-year growth for several key in-line brands.”

“In 2023, Pfizer received a record number of nine new molecular entity approvals by the FDA—medicines and vaccines that are expected to favorably impact Pfizer’s performance in the coming years.”

Guidance: Pfizer reaffirms full-year 2024 guidance of revenues of $58.5B-$61.5B and adjusted diluted EPS of $2.05-$2.25 versus consensus of $60.49B and $2.22, respectively.

Including the contribution from Seagen and excluding revenues from Comirnaty and Paxlovid, Pfizer expects to achieve full-year 2024 operational revenue growth of 8%-10% Y/Y.

Price Action: PFE shares are up 0.76% at $27.69 during the premarket session on the last check Tuesday.

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