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 conclusion of a crucial year for Pfizer, marked by significant cost reductions as it rebounds 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 notable improvement from a net loss of $3.37 billion, or a loss of 60 cents per share, in the same period the previous year. Adjusted for certain items, the company posted earnings per share of 63 cents for the quarter.
Revenue for the fourth quarter stood at $17.76 billion, reflecting a 22% increase from the corresponding period a year ago. Pfizer reaffirmed its full-year 2025 outlook, projecting sales of $61 billion to $64 billion, with expectations of a performance similar to that of its Covid products in 2024. The company anticipates challenges from changes to the Medicare program due to the Inflation Reduction Act, which could impact sales by $1 billion.
Looking ahead to 2025, Pfizer estimates 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 demand for its Covid products, with Paxlovid, its antiviral pill, generating $727 million in sales for the quarter.
The revenue from Pfizer’s Covid shot amounted to $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 of the shot. Excluding Covid-related products, Pfizer reported a 12% increase in revenue for the fourth quarter, supported by approved cancer products from Seagen, acquired in 2023 for $43 billion.
Sales of Pfizer’s Vyndaqel drugs, used to treat a specific type of cardiomyopathy, reached $1.55 billion in revenue, a 61% increase from the fourth quarter of 2023. The blood thinner Eliquis, co-marketed with Bristol Myers Squibb, contributed $1.83 billion in revenue for the quarter, up 14% from the previous year.
Pfizer’s vaccine for respiratory syncytial virus (RSV), known as Abrysvo, generated $198 million in revenue for the fourth quarter, a 62% decline from the year before. The decrease was attributed to lower U.S. vaccination rates among older adults following recommendations from the Centers for Disease Control and Prevention.
