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Pfizer (NYSE:PFE) just dropped some solid news for investors: 2025 revenue projections are right where Wall Street expected, between $61 billion and $64 billion, with adjusted earnings per share (EPS) estimated at $2.80 to $3.00. The company's cost-cutting efforts are making a real impact, with $4 billion in savings expected by the end of 2024 and another $500 million in 2025. This is a welcome boost after a rough year, where shares have dropped almost 12%, but Pfizer's ability to bounce back from the COVID-era slump is encouraging.
Despite facing some serious heat from activist investor Starboard Valuewho's been vocal about overspending on acquisitions like Seagen and falling short on internal R&DPfizer's outlook is staying steady. The company's latest projections signal that it's getting back on track with revenue growth, largely thanks to its renewed focus on cost discipline and margin improvement. However, Pfizer's pipeline still has a lot of pressure riding on it, especially after a few missteps, like the disappointing obesity drug trials and some lukewarm vaccine launches.
But, here's the thing: Pfizer is staying on course. While the company faces challenges, particularly with new market pressures like changes to Medicare's prescription plan under the Inflation Reduction Act, its forecast for 2025 still seems achievable. Analysts are cautiously optimistic, with many believing that Pfizer's ongoing restructuring efforts could spark the next phase of growth. It's not all smooth sailing yet, but Pfizer's strategy to push through these bumps could give it the fuel it needs for a comeback in the years ahead.
This article first appeared on GuruFocus.