Pfizer forecasts 2025 profits that align closely with market expectations, providing a degree of reassurance for investors amid prior criticisms. The company anticipates adjusted earnings per share between $2.80 and $3, while revenue estimates range from $61 billion to $64 billion.
Pfizer predicts 2025 profits in line with market expectations
Despite the affirmations, Pfizer’s guidance for 2025 sales marginally missed analyst forecasts, which estimated revenue of $63.26 billion and an earnings per share average of $2.88. This was highlighted by an analyst from JP Morgan, noting that although promising assets exist in Pfizer’s pipeline, significant advancements would be required to shift the current market narrative.
The 2025 outlook includes consistent sales for its COVID-19 products, Comirnaty and Paxlovid, projected to mirror 2024 figures. Sales for Comirnaty reached $1.97 billion in the third quarter of 2023, while Paxlovid generated $4.99 billion. Analysts predict total sales of around $5.03 billion for Comirnaty in the year due to the anticipated boost from the fall vaccination campaign.
Pfizer’s sales outlook does not encompass $1.2 billion in one-time revenue from Paxlovid earlier this year. Instead, the forecast incorporates a $771 million revenue credit from the U.S. government and $442 million from U.S. stockpile deliveries. Analysts have noted that increasing cost-saving efforts and a focus on new drug developments, particularly in oncology, may support future growth and mitigate declines from expiring patents.
A further challenge outlined in Pfizer’s report stems from anticipated revenue impacts due to changes in Medicare’s Part D prescription program, which is expected to result in a $1 billion reduction in revenue. Pfizer is addressing this by restructuring its operations, aiming to pay down debt and eliminate non-core businesses.
Nvidia’s cooling issues heat up, stockholders feel the burn
Pfizer’s shares have dropped nearly 12% this year, trading at less than half their peak value during the pandemic, revealing the pressures the company faces along with scrutiny from activist investors like Starboard Value, which criticized its spending patterns in acquisitions and the lack of profitable outcomes from its R&D initiatives. The company’s management is committed to ensuring profitable growth through careful evaluation of its pipeline and strategic restructuring.
Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.
Featured image credit: Pfizer
