Pfizer (PFE) Earnings - Gloomy Road Ahead
Pfizer (PFE) just announced their Q4’2022 EPS of $1.14, beating the analysts’ estimate of $1.07. They booked a revenue of $100.3 bil for FY2022 thanks to the Covid vaccine and antiviral sales which contributed more than half of it. However, the fun ends here because they are forecasting up to a 33% decline in their revenue for FY2023 as the Covid pandemic eases and hence the plunge of the demand for its vaccine.
In an attempt to diversify from the Covid business, Pfizer is planning to move to a private marketplace by preparing to launch a large number of new products in FY2023 such as Paxlovid (a Covid pill medication) to be sold through commercial channels, for which their CEO expects revenues from Covid products to grow in FY2024 after hitting a low point in FY2023.
Overall, the quarterly results confirmed a trend of moving out of the pandemic season. Pfizer is currently planning to make significant incremental investments to support their new product launches and R&D projects - great for long-term growth purposes but the company will definitely suffer in terms of free cash flow for the upcoming quarters (or years).
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QianmengYu : I load a piece on Friday. More or less too rush or mistake… Still need a year or two for new acquisitions to be commercialized.
Justin Zacks : Despite the dour forecast for Covid vaccines and antivirals, the stock is trading slightly higher post-results. Expectations of a slowdown may have already been priced in. Pfizer is down about 15% in 2023 its worst start to a year since 2009.
Ex-Covid products, revenue is expected to grow 7% to 9% in 2023. Additional, part of the lower forecast is due to increased R&D spend on the pipeline. Pfizer expects to launch 19 new drugs and indications in the next 18 months.
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