Pfizer reported better-than-expected Q1 2024 results, demonstrating resilience to the decline in COVID-19 vaccine and drug sales. The company raised its full-year earnings guidance on the back of cost cuts, strong sales of its Prevnar pneumococcal vaccine, and a smaller-than-expected decline in sales of its Paxlovid COVID-19 treatment. The better-than-expected results sent the stock up about 1.5% in premarket trading.
Revenue:
- Total revenue was $14.90 billion, down 19% year-over-year but above analysts' expectations of $13.92 billion.
- The decline was largely due to lower sales of the Comirnaty COVID-19 vaccine and Paxlovid.
- Excluding these two drugs, revenue grew 11% year-over-year.
- Comirnaty sales were $354 million in the first quarter, below analysts' expectations of $496.5 million. However, Pfizer expects the vast majority of Comirnaty sales to come in the second half of the year, primarily in the fourth quarter.
- Sales of the company's leading pneumococcal vaccine franchise (Prevnar) were $1.69 billion, exceeding expectations of $1.66 billion.
- Paxlovid sales were $2.04 billion, above expectations of $762.5 million.
Earnings:
- Non-GAAP EPS was $0.82, well above analysts' expectations of $0.51.
- The company raised its full-year adjusted EPS guidance to $2.15-$2.35 (previously $2.21).
Other Key Points from the Earnings Report:
- Pfizer maintained its full-year sales guidance for Comirnaty and Paxlovid of $8 billion.
- The company is continuing to execute its $4 billion cost-savings program and internal restructuring.
- Pfizer recently acquired oncology drugmaker Seagen for $43 billion.
- The company recorded a favorable adjustment of $771 million in the quarter due to renegotiating its contract with the U.S. government to return unused Paxlovid inventory.
The company's shares are up in premarket trading. It is worth noting that the company is showing increasing resilience to the decline in COVID-related sales as the pandemic wanes. Additionally, the company's dividend yield is 6.5%, making its shares attractive as they have fallen to their lowest levels since 2013.
