Pfizer Q3 Earnings: Drugmaker Swings To Quarterly Loss On COVID-19 Write-Offs, Sales Fall 42%

Pfizer Inc PFE has reported a Q3 adjusted EPS loss of $(0.17) versus a consensus loss of $(0.32), down from EPS income of $0.67 in Q2 and $1.78 a year ago.

The company reported a 42% slump in Q3 sales to $13.23 billion, down from $22.64 billion a year ago, beating the consensus of $12.72 billion.

The expected decline in COVID-19 product revenue, including Paxlovid and Comirnaty, drove a 41% operational decrease in Q3 revenues.

Revenues for Pfizer's non-COVID products grew 10% operationally.

"With a significant uncertainty removed by our recently announced amended Paxlovid supply agreement with the U.S. government, our expectation of additional clarification on global vaccination and treatment rates by the end of the year, and the breakthroughs continuing to emerge from our pipeline, we look forward to concluding 2023 with positive momentum that showcases Pfizer's long-term growth potential," said Albert Bourla, Chairman and CEO.

Pfizer recorded a $5.6 billion charge for inventory write-offs in the third quarter due to lower-than-expected use of COVID-19 products. 

Paxlovid posted $202 million in revenue, a drop of 97%. Comirnaty sales reached $1.31 billion, down 70%.

Guidance: Pfizer reaffirms FY23 guidance provided in October of revenues of $58-$61 billion (versus the consensus of $59.82 billion) and adjusted EPS of $1.45-$1.65 (consensus of $1.59).

The company reaffirms FY23 non-COVID operational revenue growth expectation of 6%-8% vs. 2022.

The company expects Comirnaty revenues of approximately $11.5 billion, down 70% from 2022, and Paxlovid revenues of approximately $1 billion, down 95%.

Price Action: PFE shares are down 0.75% at $30.32 during the premarket session on the last check Tuesday.