Pfizer stock jumped Tuesday after the pharma giant issued a mixed outlook for 2025.
The company expects $61 billion to $64 billion in sales and adjusted earnings of $2.80 to $3 a share.
At the midpoint, Pfizer's guidance missed forecasts ranging from $62.9 billion to $63.2 billion, according to FactSet and analysts' reports.
But the earnings guidance was mixed. The midpoint of Pfizer's view beat projections for $2.82 to $2.86 per share, Leerink Partners analyst David Risinger said in a report. However, FactSet's estimate was for $2.91 a share, slightly ahead of the $2.90 midpoint of Pfizer's outlook.
"We view this as progress toward a more predictable financial structure," Edward Jones analyst John Boylan said in a client note.
On today's stock market, Pfizer stock rose 4.7%, closing at 26.43.
Is Demand For Covid Products Stabilizing?
Leerink's Risinger called the guidance "marginally encouraging."
Pfizer expects next-year sales of Covid vaccine Comirnaty, developed with BioNTech, and the oral drug, Paxlovid, to be similar to 2024 sales. As of the third quarter, Comirnaty had generated $1.97 billion in sales, while Paxlovid brought in $4.99 billion.
For the year, analysts polled by FactSet project $5.03 billion from Comirnaty — likely helped by the fall vaccine campaign — and $4.99 billion from Paxlovid.
Pfizer's sales outlook excludes the $1.2 billion in one-time benefits from Paxlovid, notched earlier this year, but includes a $771 million U.S. government revenue credit and $442 million from U.S. stockpile delivery.
Risinger kept his market perform rating on Pfizer stock.
Edward Jones' Boylan is more upbeat. He says it could take some time for Pfizer to fully realize its cost savings efforts and see additional sales from new drugs in development. Further, Covid product demand could stabilize. None of this is reflected in Pfizer's current stock trajectory, he said.
"We continue to be encouraged by Pfizer's improving new drug pipeline, especially in cancer," he said. "This should help offset patent-expiration-related sales declines on certain products as the decade progresses."
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