Pfizer PFE reported fourth-quarter 2024 adjusted earnings per share of 63 cents, which beat the Zacks Consensus Estimate of 48 cents per share. The company had recorded earnings of 10 cents per share in the year-ago quarter.
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Revenues came in at $17.76 billion, up 22% from the year-ago quarter on a reported basis. Revenues reflected an operational increase of 21% and a positive currency impact of 1%. Total revenues also beat the Zacks Consensus Estimate of $17.5 billion.
Higher sales of Pfizer’s key non-COVID products like Vyndaqel and Eliquis and newly acquired products from Seagen, coupled with higher Paxlovid sales, drove the top line in the quarter. However, sales of some key drugs like Prevnar, Xeljanz and Ibrance and new RSV vaccine, Abrysvo declined in the quarter.
Pfizer's COVID revenues include direct sales and alliance revenues from its partner, BioNTech BNTX, for Comirnaty and product revenues from its oral antiviral pill for COVID-19, Paxlovid. Excluding revenues from COVID products, sales rose 11% operationally in the fourth quarter.
International revenues declined 12% on an operational basis to $8.54 billion. U.S. revenues rose 88% to $9.22 billion.
Adjusted selling, informational and administrative (SI&A) expenses declined 4% (operationally) in the quarter to $4.28 billion. Adjusted R&D expenses rose 8% to $2.99 billion.
PFE’s Segment Discussion
Pfizer reports its revenues under three broad sub-segments of its Biopharma operating segment — Primary Care, Specialty Care and Oncology. Sales of the Primary Care segment rose 26% operationally to $8.91 billion. The Specialty Care unit recorded sales of $4.44 billion, up 12%. Sales of Oncology rose 27% to $4.06 billion.
PFE Primary Care Sales
In Primary Care, alliance revenues and direct sales from Bristol-Myers BMY for blood-thinning treatment Eliquis rose 13% to $1.83 billion. Alliance revenues from Bristol-Myers-partnered Eliquis beat the Zacks Consensus Estimate of $1.66 billion as well as our model estimate of $1.61 billion.
Global Prevnar family revenues declined 4% to $1.56 billion. Prevnar revenues were in line with the Zacks Consensus Estimate and beat our model estimate of $1.53 billion by a slight margin.
Prevnar sales declined 7% in the United States and were flat in international markets.
Direct sales and alliance revenues from partner BioNTech for Comirnaty were $3.38 billion in the quarter, down 38% year over year due to lower vaccinations globally and lower contracted doses. Comirnaty sales beat the Zacks Consensus Estimate of $3.27 billion and our estimate of $3.13 billion.
Paxlovid revenues were $727 million in the quarter against negative $3.2 billion in the year-ago quarter. Paxlovid revenues beat the Zacks Consensus Estimate of $589 million and our model estimate of $546 million.
The newly acquired product Nurtec ODT/Vydura contributed $392 million in the quarter, which rose 39% year over year, driven by strong demand in the United States and launches in international markets.
Among the new products, Pfizer’s RSV vaccine, Abrysvo, recorded sales of $198 million, down 62% year over year. Abrysvo revenues missed the Zacks Consensus Estimate of $363 million as well as our model estimate of $425 million. While Abrysvo sales benefited from the launch uptake in international markets and demand growth for the maternal indication, sales in the United States for the older adult indication were hurt due to revised recommendations for RSV vaccinations issued in June 2024 by the US Advisory Committee on Immunization Practices.
PFE’s Specialty Care Sales
Global Vyndaqel family revenues of $1.55 billion rose 60% year over year, driven by continued demand growth, primarily in the United States and developed Europe, and increased affordability in the United States. The Vyndaqel family includes global revenues from Vyndaqel as well as revenues for Vyndamax in the United States and Vynmac in Japan. Vyndaqel family sales beat the Zacks Consensus Estimate as well as our model estimate of $1.52 billion.
Xeljanz sales declined 29% to $349 million.
PFE’s Oncology Sales
Pfizer’s acquisition of Seagen in December 2023 added antibody-drug conjugates or ADCs — Adcetris, Padcev, Tukysa and Tivdak — to its cancer portfolio. Adcetris, Padcev, Tukysa and Tivdak contributed $285 million, $444 million, $129 million and $36 million, respectively, to Pfizer’s oncology revenues in the fourth quarter.
In Oncology, Ibrance revenues declined 2% year over year to $1.1 billion. Lower demand trends globally due to competitive pressure and price decreases in some developed international markets hurt sales growth. Ibrance revenues beat the Zacks Consensus Estimate of $1.03 billion and were in line with our estimate.
Xtandi recorded alliance revenues of $565 million in the quarter, up 24% year over year. Inlyta revenues were $242 million in the quarter, down 8%.
PFE's Full-Year 2024 Results
Full-year 2024 sales rose 7% to $63.6 billion, marginally beating the Zacks Consensus Estimate of $63.4 billion. Sales were within the guided range of $61.0 to $64.0 billion. On an operational basis, sales rose 7% in the year.
Adjusted earnings for 2024 were $3.11 per share, up 69% year over year. Earnings beat the Zacks Consensus Estimate of $2.96 per share and came ahead of the guided range of $2.75 to $2.95.
PFE Re-Affirms 2025 Guidance
Pfizer maintained its guidance for 2025, which it had announced in December 2024.
Pfizer projects total revenues between $61.0 billion and $64.0 billion. Adjusted earnings per share are expected in the range of $2.80 to $3.00. Research and development expense is expected to be in the range of $10.7 billion to $11.7 billion in 2025. SI&A spending is expected in the range of $13.3 billion to $14.3 billion. The adjusted tax rate is expected to be approximately 15% in 2025.
Our Take on PFE’s Results
Pfizer’s fourth-quarter results were strong as it beat estimates for earnings as well as sales. Sales of key products like Vyndaqel and Eliquis beat estimates, while Prevnar sales were in line with estimates. Seagen drugs contributed $915 million to the top line in the fourth quarter and $3.4 billion in 2024. Revenues from Pfizer’s non-COVID products rose 11% operationally in the fourth quarter and 12% in 2024. Its COVID products also beat estimates and are still profit drivers for the company. The company reaffirmed its financial guidance for 2025.
Pfizer’s shares were up more than 2% in pre-market trading in response to the earnings and sales beat.
In the past year, Pfizer’s stock has declined 1.4% compared with a decrease of 2.5% for the industry.
Zacks Investment Research
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Pfizer faces its share of challenges, the key being declining demand for its COVID-19 products. Pfizer also expects a significant impact from the loss of patent exclusivity in the 2026-2030 period, as several of its key products will face patent expirations.
However, after a couple of tough years, it seems that Pfizer’s worst slowdown is over now, and the company is gradually making a comeback.
Pfizer’s non-COVID operational revenues improved in 2024, driven by its key in-line products like Vyndaqel and Eliquis, new launches and newly acquired products like Nurtec as well as those acquired from Seagen (December 2023). The positive trend is expected to continue in 2025.
Also, Pfizer expects cost cuts and internal restructuring, including layoffs, to deliver savings of approximately $4.5 billion by the end of 2025. Its ongoing cost realignment plan generated savings of $4 billion in 2024, as expected.
PFE's Zacks Rank & Stock to Consider
Pfizer has a Zacks Rank #3 (Hold) currently.
Pfizer Inc. Price and Consensus
Pfizer Inc. Price and Consensus
Pfizer Inc. price-consensus-chart | Pfizer Inc. Quote
A better-ranked stock is Alnylam Pharmaceuticals ALNY, with a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for Alnylam’s 2025 earnings have improved from a loss of 13 cents to earnings of 41 cents per share over the past 60 days. In the past year, Alnylam’s stock has risen 60.8%.
Alnylam beat estimates in three of the last four quarters while matching the same once, delivering a four-quarter average earnings surprise of 65.67%.
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