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Key Takeaways
- Pfizer reported a surprise profit in the fourth quarter despite double-digit revenue contraction.
- Adjusted income came in at $593 million or 10 cents per diluted share versus a loss expected by analysts.
- Fourth quarter revenue fell 41% from a year ago to $14.2 billion.
Pfizer Inc. (PFE) delivered a surprise profit in the fourth quarter despite a double-digit contraction in revenue. Pfizer shares were up 1.8% in early trading Tuesday following the release.
While analysts expected wider quarterly losses, the company posted a surprise adjusted income of $593 million or 10 cents per diluted share. That’s roughly 91% lower than the figures from the same period in the prior year.
Revenue contracted about 41% to $14.2 billion as demand for its COVID-related products—Comirnaty and Paxlovid—weakened further even. Taking those two products out of the mix, the company’s revenues grew 8% or $934 million.
| Q4 2023 | Analyst Estimates for Q4 2023 | Q4 2022 | Year-Over-Year % Change | |
|---|---|---|---|---|
| Revenue | $14.2 billion | $14.3 billion | $24.3 billion | (41.5%) |
| Adjusted Diluted Earnings (or Loss) Per Share | 10 cents | (19 cents) | $1.14 | (91.2%) |
| Adjusted Net Income (or Loss) | $593 million | ($1.1 billion) | $6.55 billion | (90.9%) |
In 2024, the company hopes to capitalize on its non-COVID revenue streams further and reap some of the benefits from its acquisition of Seagen. The company said it expects 2024 revenue in the range of $58.5 billion to $61.5 billion, including $3.1 billion from Seagen and $8 billion from Comirnaty and Paxlovid.
Adjusted diluted EPS guidance of $2.05 to $2.25 is a shade lower than previously anticipated as the company expects expenses related to Seagen to shave off about 40 cents per share.