Drug major Pfizer Inc. reported Thursday significantly higher earnings in its second quarter, above market estimates, with an all-time high quarterly sales benefited by Biopharmaceuticals and COVID-19 vaccine.
Looking ahead for fiscal 2022, the company raised the low end of adjusted earnings per share forecast, and maintained revenue view.
On an operational basis, Pfizer raised its 2022 financial guidance for revenues and adjusted earnings per share by approximately $2 billion and $0.24, respectively.
In pre-market activity on the NYSE, Pfizer shares were gaining around 1 percent to trade at $52.25.
According to David Denton, Chief Financial Officer and Executive Vice President, strong operational revenue and earnings growth was driven by multiple therapeutic areas across the company, and the company’s COVID-19 franchises.
For the year 2022, the bottom end of the guidance range for adjusted earnings per share was increased by $0.05 to $6.30 to $6.45, compared to previous estimate of $6.25 to $6.45.
On average, 19 analysts polled by Thomson Reuters expect earnings of $6.62 per share for the year. Analysts’ estimates typically exclude special items.
The company now expects earnings growth of 55 percent to 59 percent, compared to previous estimate of 54 percent to 59 percent. Operational growth is now expected to be 63 percent to 67 percent, compared to previously expected 59 percent to 64 percent.
The midpoint of the guidance range for adjusted earings per share reflects a 65 percent operational increase over last year’s $4.06.
Further, the guidance range for revenues remains unchanged at $98 billion to $102 billion, expecting growth between 21 percent to 25 percent. Operational revenue growth is now expected between 27 percent to 32 percent, higher than previous estimate of 25 percent to 30 percent. Analysts estimate revenues of $102.92 billion for the year.
Pfizer said the midpoint of the guidance range for revenues reflects a 29 percent operational increase compared to 2021 revenues of $81.3 billion.
The company reaffirmed its revenue guidance for Comirnaty, the Pfizer-BioNTech SE (BioNTech) COVID-19 vaccine, and for Paxlovid, its oral COVID-19 treatment.
Comirnaty revenues for the year would be approximately $32 billion, and Paxlovid revenues would be around $22 billion.
For the second quarter, net earnings came in at $9.91 billion or $1.73 per share, 78 percent higher than last year’s $5.56 billion, or $0.98 per share.
Adjusted earnings were $11.66 billion or $2.04 per share for the period, compared to $6.02 billion or $1.06 per share a year ago. Analysts expected the company to earn $1.80 per share for the quarter.
The company’s revenue for the quarter rose 46.8 percent to $27.74 billion from $18.90 billion last year, while analysts expected $25.74 billion.
Operational revenue growth was 53 percent. Excluding growth from Paxlovid and Comirnaty, company revenues grew 1 percent operationally.
Pfizer Biopharmaceuticals revenues climbed 49 percent from last year to $27.43 billion, and revenues from Vaccines grew 13 percent to $10.46 billion.
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