Pfizer Inc (PFE) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and Raised Guidance

GuruFocus News
3 min read

In This Article:

  • Total Revenue: $17.7 billion, representing 32% operational growth.

  • Paxlovid Revenue: $2.7 billion, including $442 million from the US government strategic national stockpile.

  • COMIRNATY Revenue: $1.4 billion.

  • Non-COVID Products Revenue: $13.6 billion, reflecting 14% operational year-over-year growth.

  • Adjusted Gross Margin: Approximately 72%.

  • Total Adjusted Operating Expenses: Decreased 2% operationally to $5.8 billion.

  • Adjusted Diluted Earnings Per Share: $1.06.

  • Full-Year Revenue Guidance: Raised to $61 billion to $64 billion.

  • COVID-19 Product Revenue Guidance: $10.5 billion ($5 billion for COMIRNATY and $5.5 billion for Paxlovid).

  • Full-Year Adjusted Diluted EPS Guidance: $2.75 to $2.95.

Release Date: October 29, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Pfizer Inc (NYSE:PFE) reported strong financial performance with a 32% operational growth in total company revenues for the third quarter of 2024.

  • The company raised its full-year 2024 revenue guidance by $1.5 billion and adjusted diluted earnings per share by $0.30.

  • Pfizer's oncology segment delivered a 31% year-over-year growth, driven by strong demand for products like XTANDI and TALZENNA.

  • The company is making significant advancements in its pipeline, particularly in oncology and vaccines, with multiple Phase III trials underway.

  • Pfizer's cost-reduction programs are creating a more efficient organization, setting the stage for increased capital returns and supporting dividend growth.

Negative Points

  • Pfizer Inc (NYSE:PFE) faces challenges with the integration of Seagen, although it has retained the majority of legacy Seagen colleagues.

  • The company is experiencing headwinds from the discontinuation of OXBRYTA, impacting its non-COVID revenue guidance.

  • There is uncertainty regarding the long-term impact of the Inflation Reduction Act (IRA) and Part D redesign on Pfizer's business.

  • Pfizer's COVID-19 vaccine, COMIRNATY, contributed less to revenue compared to previous years, reflecting a stabilization in demand.

  • The company is under pressure from activist investors, such as Starboard Value, who have expressed dissatisfaction with Pfizer's total shareholder return and capital deployment strategy.

Q & A Highlights

Q: Can you provide insights into Pfizer's strategy for obesity treatments, particularly regarding the oral GLP-1 and GIP antagonist assets? A: Albert Bourla, CEO, explained that Pfizer aims to be the second company to market with an oral GLP-1 treatment, danuglipron, which is progressing well. Mikael Dolsten, Chief Scientific Officer, added that the once-a-day modified release of danuglipron could offer special features, and the GIP antagonist is being tested for potential enhanced efficacy when combined with GLP-1.

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