Betancur | Corbis News | Getty Images
Pfizer on Tuesday reported third-quarter earnings and a corresponding profit that was not expected as the company’s Covid vaccine and antiviral pill Paxlovid helped boost sales.
The pharmaceutical giant also raised its full year outlook and now expects to book adjusted earnings per share of $2.75 to $2.95, up from the previous guidance of $2.45 to $2.65 per share.
Pfizer now expects revenue in the range of $61 billion to $64 billion, up from its previous revenue forecast of between $59.5 billion and $62.5 billion.
Here’s how the company’s third-quarter earnings compared to what Wall Street expected, based on a survey of analysts by LSEG:
- Earnings per share: $1.06 cents adjusted vs. 62 cents expected
- result: $17.70 billion vs $14.95 billion expected
It was a critical quarterly report for Pfizer, which has been cutting costs as it recovers from a drop in Covid-19 business and stock prices over the past two years. Shares of the drug maker are trading at about half of what they have been since the pandemic, with a market cap of about $163 billion.
Pfizer is also struggling with a proxy war waged by activist investor Starboard Value, which has a $1 billion stake in the pharmaceutical company.
Starboard management member Jeff Smith asserted that Pfizer failed to account for the profits it made from its Covid products and, in the process, destroyed tens of billions of dollars in market value. Smith points to what he believes to be management’s poor investment in research and development and excessive acquisitions that have yet to return the struggling company.
Smith called for a massive overhaul at Pfizer, claiming the company needed to be more disciplined in its investments.
Meanwhile, Pfizer said earlier it was on track to deliver at least $4 billion in savings by the end of the year. The company in May announced a multi-year plan to cut costs, with the first phase of the effort expected to result in $1.5 billion in savings by 2027.
This story is evolving. Please check back for updates.
