Pfizer (NYSE: PFE) stock jumped 6% in intraday trading Wednesday following the release of its first-quarter earnings report. Investors reacted positively to the news, as Pfizer showcased a smaller-than-expected decline in its earnings, buoyed by robust sales growth in non-COVID products.
Pfizer (PFE) reported a 20% year-over-year decline in revenue to $14.88 billion for the three months ending March. This figure beat analyst estimates of $13.95 billion compiled by Visible Alpha.
Net income saw a 44% decline to $3.12 billion, or 55 cents per share, compared to last year’s figure of $5.54 billion and 97 cents per diluted share. Adjusted net income, excluding certain items, came in at $4.67 billion or 82 cents per diluted share.
The company credited a decline in revenue and profits to a 19% drop in pharmaceutical sales. However, sales of non-COVID products, excluding Pfizer’s COVID vaccine and treatment drug Paxlovid, surged by 11% compared to the previous year.
Pfizer’s recent revenue downturn follows a period of record-breaking performance driven by the introduction of its COVID-19 vaccine. Governments and healthcare institutions worldwide heavily invested in Pfizer’s vaccines and treatment drugs, including Paxlovid.
The company remains steadfast in its commitment to cost-cutting measures, aiming to achieve savings of approximately $4 billion by the end of 2024.
David Denton, the Chief Financial Officer of Pfizer, expressed his satisfaction with the robust 11% operational revenue growth of Pfizer’s non-COVID products in the first quarter, which he said is a testament to their commitment to effective commercial execution. He reiterated Pfizer’s commitment to achieving targeted cost savings by the end of the year through an ongoing cost realignment program.
Financial Outlook and Guidance
In addition, Pfizer (NYSE: PFE) affirmed its full-year guidance, expecting total revenue to range between $58.5 billion and $61.5 billion, with analysts expecting around $59.81 billion. The company also raised its full-year adjusted diluted earnings per share (EPS) forecasts to a range of $2.15 to $2.35, citing progress in cost-cutting efforts and confidence in the underlying strength of the business.
Moreover, Pfizer announced its second-quarter dividend last week, planning to payout 42 cents per share on June 14, and stated that it does not anticipate using any of its remaining $3.3 billion in its existing stock buyback program this year.
Pfizer (NYSE: PFE) Stock Movement
PFE stock surged 6.09% to close at $27.18 on Wednesday. Its value has risen by 3.46% this week. Trading activity has witnessed 87,912,335 (87.91 million) shares changing hands, well above the average daily volume of 41.13 million.
