Pfizer's Earnings Exceed Expectations, Despite Market Uncertainty
Pfizer (PFE) released its financial results for the fourth quarter and full year 2024 on Tuesday, outperforming Wall Street estimates while facing market headwinds.
Financial Performance:
* Full-year revenue reached $63.6 billion, a 7% increase from 2023.
* Q4 revenue stood at $17.8 billion, exceeding expectations by 21% year-over-year.
* Earnings per share for the full year were $3.12, surpassing estimates of $2.97.
Cost Reduction Initiatives:
Pfizer's ongoing focus on downsizing aims to mitigate declining COVID-19 revenue. The company plans to achieve $4.5 billion in savings by 2025 and an additional $1.5 billion by 2027 through manufacturing optimizations and R&D program adjustments.
Market Headwinds:
* Investors remain cautious as Pfizer builds its pipeline and seeks to offset revenue losses from patent expirations.
* The company faces Medicare price negotiations for drugs including Ibrance and Xtandi.
* Slowdown in enthusiasm for Pfizer's oral GLP-1 candidate, danuglipron, poses another challenge.
Leadership Perspective:
"We will enhance shareholder value by improving the productivity of our R&D pipeline and advancing our strategic priorities in 2025," said CEO Albert Bourla.
Analyst Coverage:
Follow Anjalee Khemlani (@AnjKhem) on social media for updates on Pfizer's earnings and healthcare industry news.