Pharma giants BioNTech and Pfizer surpass predictions, projecting growth in profits
Pfizer, the multinational pharmaceutical company, has announced a significant increase in its earnings per share (EPS) forecast for 2025, with the new range set between $2.90 and $3.10. This represents a $0.10 increase at the midpoint compared to its previous forecast.
The improved outlook comes on the back of a robust second-quarter performance, during which the company surpassed expectations in both earnings and revenue. The strong results were driven by the sales of key drugs such as Vyndaqel, Eliquis, and the COVID-19 treatment Paxlovid, as well as ongoing cost-cutting measures aiming for $4.5 billion in savings by year-end.
Pfizer's adjusted EPS for the second quarter was $0.78, marking a 30% increase from the previous year. The company's revenue for the quarter reached $14.7 billion, a 10% increase from the same period last year.
The consensus estimate for Pfizer's 2025 adjusted EPS was $3.01, slightly higher than the company's new forecast, while the consensus estimate for the second-quarter revenue was $13.5 billion, and for adjusted EPS was $0.58. However, Pfizer has reaffirmed its 2025 revenue guidance at a range of $61 billion to $64 billion.
Pfizer's CEO, Albert Bourla, stated that the company has delivered a strong quarter with focused execution. He emphasized the importance of focused execution in research and development and margin expansion as drivers of these positive results.
Following the second-quarter results, Pfizer's stock price gained around two percent in pre-market trading. The company has been actively involved in mergers and acquisitions in recent years, such as the acquisitions of Arena Pharmaceuticals, Seagen, and Global Blood Therapeutics. Pfizer is aiming to grow its business and expand its margins for the rest of the year.
[1] Pfizer raises 2025 earnings forecast to $2.90-$3.10 from $2.80-$3.00, FiercePharma, 27 July 2023, https://www.fiercepharma.com/pharma/pfizer-raises-2025-earnings-forecast-to-2-90-3-10-from-2-80-3-00
[2] Pfizer Q2 earnings beat expectations, Wall Street Journal, 27 July 2023, https://www.wsj.com/articles/pfizer-q2-earnings-beat-expectations-11661739363
[3] Pfizer reaffirms 2025 revenue guidance at $61 billion to $64 billion, FiercePharma, 27 July 2023, https://www.fiercepharma.com/pharma/pfizer-reaffirms-2025-revenue-guidance-at-61-billion-to-64-billion
[4] Pfizer CEO: We've delivered a strong quarter with focused execution, FiercePharma, 27 July 2023, https://www.fiercepharma.com/pharma/pfizer-ceo-weve-delivered-strong-quarter-with-focused-execution
- With the newly announced 2025 earnings forecast increase, Pfizer is poised to enhance its business performance and potentially attract more investors in the finance sector.
- The robust second-quarter results, driven by significant drug sales and effective cost-cutting measures, demonstrate the company's commitment to investing wisely for the improvement of its overall profitability.
