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Pfizer Inc. (PFE) reported robust financial results for the second quarter of 2024, showcasing a significant operational increase in revenues despite a challenging market environment.

The company’s total revenues for the quarter amounted to $13.3 billion, reflecting a 3% operational growth year-over-year. This growth was achieved despite an anticipated decline in COVID-related revenues from Comirnaty and Paxlovid. Excluding these contributions, Pfizer’s revenues grew by an impressive 14% operationally.

The company’s adjusted diluted earnings per share (EPS) for the second quarter stood at $0.60, surpassing the reported diluted EPS of $0.01. The reported EPS was adversely impacted by a $1.3 billion one-time restructuring charge related to Pfizer’s Manufacturing Optimization Program, which negatively affected the reported diluted EPS by $0.18. This program is expected to yield approximately $1.5 billion in cost savings by the end of 2027.

Pfizer’s strong performance was driven by the exceptional growth of its Oncology portfolio, with significant contributions from legacy-Seagen products. The company also saw notable revenue increases from key in-line brands and recent commercial launches. This marks Pfizer’s first quarter of topline revenue growth on a year-over-year basis since the fourth quarter of 2022.
 

Pfizer Reports Double Beat in Q2 2024

Pfizer’s second-quarter performance exceeded market expectations. Analysts had projected an EPS of $0.46, but Pfizer delivered an adjusted diluted EPS of $0.60, significantly surpassing these estimates. Similarly, the company’s revenues of $13.3 billion outperformed the anticipated $13.03 billion, demonstrating Pfizer’s strong commercial execution and strategic focus.

The 14% operational revenue growth from non-COVID products was a key highlight, underscoring the company’s successful diversification efforts. This growth was primarily driven by several acquired products, key in-line brands, and recent commercial launches. Notably, the Oncology portfolio, including legacy-Seagen products, played a crucial role in this robust performance.

Despite the expected decline in revenues from Comirnaty and Paxlovid, Pfizer managed to offset these losses with substantial growth in other areas. Comirnaty revenues for the second quarter were $195 million, an 87% operational decline compared to the prior-year quarter. Paxlovid revenues, however, increased by 79% operationally, reaching $251 million, driven by higher demand in certain international markets.
 

Pfizer Raises Full Year 2024 Guidance

Pfizer has raised its full-year 2024 revenue guidance to a range of $59.5 to $62.5 billion, up from the previous range of $58.5 to $61.5 billion. The company also increased its adjusted diluted EPS guidance to a range of $2.45 to $2.65, up from the earlier range of $2.15 to $2.35.

The updated guidance includes approximately $8.5 billion in anticipated revenues from Comirnaty and Paxlovid, with $5 billion and $3.5 billion expected from each product, respectively. Excluding these contributions and including the impact of the Seagen acquisition, Pfizer anticipates achieving full-year 2024 operational revenue growth of 9% to 11% compared to 2023 revenues.

Pfizer’s financial outlook also considers the anticipated minimal incremental impact of changes in foreign exchange rates since the last update on May 1, 2024. The company expects an effective tax rate of approximately 13.0% on adjusted income, down from the previous estimate of 15.0%. Additionally, Pfizer does not anticipate any share repurchases in 2024, with the remaining share repurchase authorization standing at $3.3 billion.

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