In Tuesday's pre-market trade, Pfizer's (PEE, Financial) shares edged up following a strong third-quarter earnings report that beat analysts' estimates. The New Jersey-based pharmaceutical company recorded a notable return to profit in Q3, with adjusted earnings per share of $1.06, surpassing the anticipated $0.61.
Total net revenues for the company stood at $17.7 billion, a 31% increase from the same quarter for the previous year and $1.8 billion above market expectations of $14.9 billion. This increase was mainly driven by the continued sales performance of Paxlovid for COVID-19 patients and the solid sales of the oncology products. In particular, the oncology segment, which comprises only a part of the oncology drugs, generated $ 4.04 billion or 19.3% of the overall value added in Q3, continually rising at 29.8% YoY.
Looking at the financial year 2024, Pfizer has adjusted its forecasts to predict revenues between $61 and $64 billion, up from the anticipated range of $59.5-$62.5 billion. Likewise, adjusted earnings per share are expected to fall within the range of $2.75 – 2.95, compared to the prior projection of $2.45 – $2.65. This new guidance is based on estimated sales of about $10.5bn in its COVID-19 drugs, Comirnaty and Paxlovid.
Also, with the cost savings looking to hit in the second half of the year, Pfizer is in good stead. The company's initiatives should generate cost savings of at least $4bn by the end of this year, with the first phase of the cost-cutting strategy estimated to net $1.5bn by 2027. These are evidence of continued strategic changes and focus on efficiency seen at Pfizer in its recent financial re-formulation.
