In this article, Pfizer reported fourth-quarter earnings and revenue that exceeded estimates due to strong sales of the company’s Covid products and effective cost-cutting measures. The company’s performance for the fourth quarter compared favorably with Wall Street expectations based on an analyst survey by LSEG. Despite this positive outcome, Pfizer’s shares experienced a slight decline in morning trading on Tuesday.
The results mark the end of a crucial year for Pfizer, which has been implementing significant cost reductions to recover from the challenges faced by its Covid business and stock price in recent years. Pfizer aims to achieve net cost savings of approximately $4.5 billion by the end of 2025 through its cost-cutting initiatives.
For the fourth quarter, Pfizer reported a net income of $410 million, or 7 cents per share, a significant improvement from a net loss of $3.37 billion, or a loss of 60 cents per share, in the same period the previous year. Excluding certain items, the company posted earnings per share of 63 cents for the quarter.
Pfizer’s revenue for the fourth quarter stood at $17.76 billion, reflecting a 22% increase from the same period a year ago. The company reaffirmed its full-year 2025 outlook, projecting sales of $61 billion to $64 billion, with a similar performance expected from its Covid products as in 2024. However, changes to the Medicare program due to the Inflation Reduction Act are anticipated to negatively impact sales by $1 billion.
Looking ahead to 2025, Pfizer anticipates earnings in the range of $2.80 to $3 per share, excluding one-time items. Investors are closely monitoring Pfizer’s long-term financial health and drug pipeline, particularly its potential entry into the weight loss drug market with danuglipron, an experimental obesity pill.
Pfizer managed to avoid a proxy battle with activist investor Starboard Value, who holds a significant stake in the company. The deadline for nominating board members for the current year has passed. The company’s strong fourth-quarter performance was partly driven by higher-than-expected demand for its Covid products, including the antiviral pill Paxlovid, which generated $727 million in sales for the quarter.
Revenue from Pfizer’s Covid shot totaled $3.4 billion, a decrease of $2 billion from the same period a year ago, primarily due to reduced global Covid vaccinations and contracted doses. Excluding Covid products, Pfizer reported a 12% increase in revenue for the fourth quarter, driven by approved cancer products from Seagen and sales of Vyndaqel drugs used to treat cardiomyopathy.
Additionally, Pfizer’s blood thinner Eliquis, co-marketed with Bristol Myers Squibb, contributed to revenue growth, generating $1.83 billion in sales for the quarter. Sales of Pfizer’s vaccine for respiratory syncytial virus (RSV), known as Abrysvo, saw $198 million in revenue for the fourth quarter, impacted by decreased U.S. vaccination rates among older adults following updated recommendations from the Centers for Disease Control and Prevention.
