Pfizer maintained its outlook for 2022 sales despite posting a big Covid vaccines number Tuesday, but Pfizer stock still climbed.
For the year, the company expects its BioNTech-partnered shot, Comirnaty, to bring in $32 billion in sales. In addition, Pfizer called for $22 billion from its antiviral pill known as Paxlovid. The two products were mixed with Comirnaty beating expectations, but Paxlovid was light.
All together, it paints a less "rosy" outlook for the Covid vaccines market than Wall Street initially thought, SVB Leerink analyst Mani Foroohar said in a report to clients. Moderna had previously called for stronger sales in the latter half of 2022.
"Implicit in Pfizer's results and guidance is a front-loading of fiscal year 2022 revenues," Foroohar said. This is "a clear sign of slowing in the vaccine end market and directly in conflict with the 'back-half weighted' revenue trajectory for the year implied by Moderna management for their franchise."
On today's stock market, Pfizer stock rose nearly 2% to close at 49.29.
Pfizer Stock: Across The Board Beat
Overall, first-quarter metrics topped expectations. Pfizer earned $1.62 per share, excluding certain items, on $25.66 billion in sales. Earnings soared 72% and sales popped 82% operationally. Excluding the impact of Comirnaty and Paxlovid, sales inched 2% higher.
Comirnaty generated $13.2 billion in sales, rocketing 77% year over year. That beat analysts' call by more than $2.6 billion, Mizuho Securities analyst Vamil Divan said in a report. But Paxlovid sales were nearly $950 million short.
"This was not a major surprise to us given the relatively slow pace at which we are seeing governments sign contracts for Paxlovid, but we assume (it) will likely still be met with some disappointment," he said. Still, Divan kept his neutral rating on Pfizer stock.
Pneumonia vaccine Prevnar sales and blood thinner Eliquis also topped expectations, growing 59% and 12%, respectively. Pfizer noted Prevnar sales benefited from retail and wholesale stocking for adult vaccination and government purchases for pediatric shots. Eliquis sales grew amid continued adoption of anticoagulant pills, Pfizer said.
But sales of Xeljanz and Ibrance tumbled, Divan said. Xeljanz, an arthritis and ulcerative colitis treatment, brought in $372 million, down 29% operationally. Sales of breast cancer treatment Ibrance fell 5% in the U.S. due to an increase in patients using a lower-cost program.
Guidance Lackluster For 2022
For the year, Pfizer still expects $98 billion to $102 billion in sales, well below bullish views for $105.92 billion, according to FactSet.
The company trimmed its earnings forecast by a dime at the midpoint to reflect new accounting requirements. Now, it expects adjusted profit of $6.25-$6.45 per share. That also missed the Street's call for $7.14.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
