Pfizer is gearing up to release its fourth-quarter earnings report on Tuesday morning, capping off a year marked by noteworthy acquisitions and disappointing stock performance. According to FactSet, analysts predict a loss of $0.18 per share for the quarter, with revenue estimated at $14.4 billion.
2024 Guidance and Cost Saving Measures
In December, Pfizer outlined its guidance for 2024, which fell below expectations, prompting a reset in investor outlook. The company also announced a cost savings program aimed at achieving $4 billion in savings.
For the current year, Pfizer expects adjusted diluted earnings in the range of $2.05 to $2.25 per share, with revenue projected to be between $58.5 billion and $61.5 billion. The consensus estimate for earnings is $2.27 per share.
Stock Performance and Future Outlook
Pfizer’s shares have experienced a decline of 4.9% since the beginning of the year, and a significant drop of 37.1% over the past 12 months. Despite engaging in major acquisitions, such as the $43 billion purchase of cancer-focused biotech Seagen and the $11 billion acquisition of Biohaven Pharmaceuticals last year, these ventures have failed to ignite investor enthusiasm.
Looking ahead, Pfizer faces a daunting patent cliff in the next decade, with an anticipated annual revenue loss of $17 billion looming. Patent expirations are slated to occur in the coming year. Additionally, the company’s obesity pill, currently undergoing clinical trials, has consistently disappointed, resulting in uncertainty regarding regulatory approval and potential market success.
Focus on Cost-Cutting Program and Respiratory Syncytial Virus Vaccine
Investors will be keenly interested in updates concerning Pfizer’s cost-cutting program. Moreover, attention will be directed towards the performance of the company’s newly-approved respiratory syncytial virus (RSV) vaccine. In January, Pfizer CEO Albert Bourla expressed dissatisfaction with the commercial rollout of the RSV vaccine, acknowledging that although sales exceeded expectations, Pfizer secured only 35% of the market.
Reflecting on Pfizer’s earlier optimism, Bourla had previously predicted that the company would dominate the RSV vaccine market in November 2022.
Big Pharma Earnings Week
Pfizer’s earnings report initiates a busy week for big pharma, as other major players are set to release their financial results as well.