Pfizer (ticker: PFE), a leading pharmaceutical company, is set to release its third-quarter earnings report on Tuesday amid a decline in sales projections for its Covid-19 products. Despite introducing several new products and vaccines in recent months, Pfizer’s shares have dropped by roughly 40% this year, reaching a new 52-week low last Friday.
Investors Concerned About Plummeting Covid-19 Revenue
While Pfizer has launched a vaccine for respiratory syncytial virus, an ulcerative colitis pill, and a meningococcal vaccine, among other products, investors remain focused on the company’s declining revenue from Covid-19 treatments. In mid-October, Pfizer admitted that its initial projections for 2023 Covid-19 sales were overly optimistic. The company revised its estimation for the sales of its Covid-19 antiviral Paxlovid from $8 billion to $1 billion for 2023 due to the U.S. government returning a significant portion of the doses it had purchased. Additionally, Pfizer reduced its guidance for the sales of its Covid-19 vaccine Comirnaty by $2 billion for 2023.
Analysts’ Forecast for Third-Quarter Earnings
Analysts predict that Pfizer will report a loss of 8 cents per share for the quarter on sales amounting to $13.3 billion, according to FactSet. This marks a significant contrast from the 58 cents per share profit recorded prior to the sales projections update.
Despite the challenges faced by Pfizer, the company aims to capture the attention of investors and highlight its recent product launches during the third quarter. The earnings report will shed light on Pfizer’s performance as it navigates through this turbulent period.
Pfizer Cuts Profit Forecast Amidst Challenging Outlook
In mid-October, Pfizer, one of the leading pharmaceutical companies, revised its full-year profit forecast, indicating a decrease in earnings between $1.45 and $1.65 per share in 2023. This projection suggests a loss in the second half of the year as the adjusted diluted earnings for the first half were reported at $1.90.
Following the announcement, Pfizer’s stock experienced a slight recovery of 1.2% on October 16th, although it has declined by nearly 10% since the release of the new forecasts.
Attention now turns to Pfizer’s ongoing Phase 2b trial for their oral obesity pill, danuglipron, which has the potential to rival Eli Lilly’s experimental obesity pill, orfoglipron. Positive results from this trial could allow Pfizer to enter the GLP-1 market where Lilly and Novo Nordisk currently dominate.
Many investor concerns were addressed during the mid-October announcement; however, whether Pfizer’s executives can shift focus from their Covid-19 endeavors to the company’s new launches and pipeline products remains uncertain.