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Pfizer beats earnings estimates, hikes full-year outlook as drugmaker cuts costs

BusinessPfizer beats earnings estimates, hikes full-year outlook as drugmaker cuts costs


Kena Betancur | Corbis News | Getty Images

Pfizer on Thursday reported second-quarter revenue and adjusted earnings that blew past expectations and raised its full-year outlook, benefiting from its broad cost-cutting program, better-than-expected sales of its Covid antiviral pill Paxlovid and strong non-Covid product sales.

Pfizer now expects to book adjusted earnings of $2.45 to $2.65 per share for the fiscal year, up from its previous guidance of $2.15 to $2.35 per share. 

Pfizer also hiked its revenue outlook to a range of $59.5 billion to $62.5 billion, up from a previous revenue forecast of between $58.5 billion and $61.5 billion.

The results come as Pfizer scrambles to stabilize its business and win back Wall Street’s favor following the rapid decline in demand for its Covid products. Demand for its vaccine and antiviral pill Paxlovid plunged and transitioned to the commercial market in the U.S. last year as the world emerged from the pandemic. 

As revenue dried up, Pfizer in October launched a broad cost-cutting push that aims to deliver at least $4 billion in savings by the end of 2024. The company has since announced a separate multi-year plan to slash costs, with the first phase of the effort slated to deliver $1.5 billion in savings by 2027. 

Pfizer is also zeroing in on treating cancer after its whopping $43 billion acquisition of Seagen last year. 

Here’s what the company reported for the second quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: 

  • Earnings per share: 60 cents adjusted vs. 46 cents expected.
  • Revenue: $13.28 billion vs. $12.96 billion expected.

The company booked second-quarter net income of $41 million, or 1 cent per share. That compares with net income of $2.33 billion, or 41 cents per share, during the same period a year ago. Excluding certain items, the company posted earnings per share of 60 cents for the quarter.

Pfizer recorded revenue of $13.28 billion for the second quarter. That is up 2% from the same period a year ago.

This story is developing. Please check back for updates.



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