Pfizer (PFE 1.55%), a global leader in the pharmaceutical industry, announced its first quarter results on May 1, outperforming analysts' expectations with adjusted diluted earnings per share (EPS) of $0.82 and total revenues of $14.9 billion. Analysts had forecast EPS of $0.52 and revenues of $13.9 billion. Pfizer's business showed operational resilience despite a marked decrease in COVID-related product sales.
| Metric | Q1 2024 Results | Q1 2024 Analysts Estimate | Q1 2023 Results | % Change |
|---|---|---|---|---|
| Revenue | $14.9 billion | $13.9 billion | $18.5 billion | (20%) |
| Adjusted diluted EPS | $0.82 | $0.52 | $1.23 | (33%) |
Other segments step up as COVID product sales slide
Beyond its well-known COVID-19 products, the innovative pharmaceutical company boasts a diverse array of treatments across indications in areas such as oncology, vaccines, and cardiovascular health. It has built its success through an ambitious research and development program as well as via acquisition. It recently purchased Seagen, further strengthening its oncology portfolio.
Despite a 19% decline in operational revenue -- mainly due to falling sales of the COVID-19 vaccine Comirnaty and antiviral Paxlovid -- Pfizer's non-COVID portfolio showed resilience. The company reported an 11% operational increase in revenues from its diverse portfolio of non-COVID products. Its oncology and vaccine segments, in particular, displayed robust performance.
Pfizer's strategic developments, including the acquisition of Seagen, underscore its commitment to strengthening its oncology pipeline, a key growth driver. With this strategic move and its ongoing cost realignment program, management aims to bolster Pfizer's market position as it navigates the post-pandemic landscape.
Looking ahead
Pfizer had previously issued EPS guidance for 2024 for a range of $2.05 to $2.25. In conjunction with the new report, management boosted that to a range of $2.15 to $2.35, maintaining a positive outlook despite the slumping revenues from its COVID portfolio. Investors considering buying Pfizer's stock are advised to monitor the company's ongoing integration of Seagen and its progress on its cost realignment plan, both of which are expected to have significant impacts on its trajectory.
