Pfizer Sees FY24 Adj. EPS, Revenues Below Market; Stock Down In Pre Market

(RTTNews) - Drug major Pfizer Inc. (PFE) on Wednesday said it expects higher adjusted earnings and revenues for fiscal 2024, but both below market estimates.

In pre-market activity on the NYSE, the shares were losing around 7.2 percent to trade at $26.53.

The outlook includes the expected financial impact from the proposed Seagen acquisition. Pfizer and Seagen have received all required regulatory approvals for the closing of the acquisition. Pfizer expects to complete the acquisition of Seagen on December 14, subject to the satisfaction of other customary closing conditions.

For fiscal 2024, the company projects adjusted earnings per share of $2.05 to $2.25, including Seagen impact.

Revenue is expected to be in the range of $58.5 to $61.5 billion, including Seagen contribution of around $3.1 billion.

Analysts on average expect the company to report earnings of $3.16 per share on revenues of $63.07 billion for the year, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

The company projects around $8 billion in revenues for Comirnaty and Paxlovid in 2024.

Operational revenue growth for the year is estimated to be 8 percent-10 percent including Seagen contribution and excluding Comirnaty and Paxlovid revenues. Revenue growth would be 3 percent-5 percent excluding both Seagen contribution and Comirnaty and Paxlovid revenues.

As announced earlier, the company projects fiscal 2023 adjusted earnings in a range of $1.45 and $1.65 per share on revenues between $58.0 billion and $61.0 billion.

The Street estimates earnings of $1.56 per share on revenues of $58.81 billion for the year.

The Ffiscal 2023 outlook includes revenues of about $11.5 billion for Comirnaty and about $1 billion for Paxlovid. Excluding COVID-19 products, the company expects 6 to 8 percent operational revenue growth.

Albert Bourla, Pfizer Chairman and Chief Executive Officer, stated, "Pfizer's product portfolio remains strong. In 2024, Comirnaty and Paxlovid are expected to deliver combined revenues of approximately $8 billion and our remaining portfolio of combined Pfizer and Seagen products is expected to achieve year-over-year operational revenue growth in the range of 8 percent to 10 percent."

Further, the company expects cost realignment program to deliver savings of at least $4.0 billion by the end of 2024, expecting to potentially regain pre-pandemic operating margins.