Pfizer Reports Strong Q4 Results, Raises Revenue Guidance

Pfizer (NYSE:PFE) posted better-than-expected sales in Q4 CY2024, beating market revenue estimates by 3%, with sales rising 21.9% year-over-year to $17.76 billion.

Q4 CY2024 Highlights:

* Revenue: $17.76 billion vs. $17.25 billion analyst estimates (21.9% YOY growth)
* Adjusted EPS: $0.63 vs. $0.46 analyst estimates (37.2% beat)
* Revenue guidance for FY2025: $62.5 billion at midpoint (-1.8% growth vs. 10.3% in FY2024)
* Adjusted EPS guidance for FY2025: $2.90 at midpoint (-1.1% miss on analyst estimates)
* Operating Margin: -0.1% (up from -8.7% in the same quarter last year)
* Organic Revenue: 21% YOY growth (-42% in the same quarter last year)
* Market Capitalization: $148.5 billion

Despite missing full-year revenue and EPS guidance estimates, the company's strong Q4 performance and organic revenue growth impressed analysts.

Sales Growth and profitability:

* Pfizer's sales grew at a mediocre 5.1% CAGR over the last five years, below the sector benchmark.
* However, in Q4, the company reported robust YOY revenue growth of 21.9%.
* Pfizer boasts strong profitability, with an average adjusted operating margin of 32.3% over the last five years.
* Its adjusted operating margin increased by 3.2 percentage points over the last five years but has decreased by 8 percentage points on a two-year basis.

Earnings Per Share (EPS):

* Pfizer's EPS grew at a slow 1.1% CAGR over the last five years, despite its 5.1% revenue growth.
* However, in Q4, the company reported EPS of $0.63, beating estimates by a wide margin.
* Wall Street expects Pfizer's full-year EPS to shrink by 6.7% in 2025.

Overall, Pfizer's Q4 results were mixed, with strong revenue growth and EPS outperformance offset by slightly missed guidance estimates. Analysts remain optimistic about the company's long-term prospects.