Pfizer revises earnings estimates upwards 2024

Pfizer is revising its profitability estimates for the current financial year upward due to positive expectations for the performance of its new cancer drugs, which should offset the decline in results due to the Covid-related slowdown in sales. On the other hand, the drop in results related to the vaccine and Covid drugs was, according to analysts, the boulder that cost the group a more than 40% drop in shares on the stock market. The stock has shown a positive performance of just over 2% since the beginning of the year, but in the prosopective of the last five years, the performance has been flat.

For the 2024 financial year, Pfizer said it expects adjusted earnings of between $2.45 and $2.65 per share, 30 cents higher than the previous projection. The market, after a positive reception in the early stages, however, turned downwards for the stock, which dropped more than one percentage point.

"Ultimately, we believe stronger launch results and/or further progress in the pipeline will be required to significantly change the narrative on the stock, which we believe is more likely in 2025 or beyond," wrote JPMorgan analyst Chris Schott in a note to investors, reported by Bloomberg. The note put the market's misgivings in black and white despite the positive news.

Pfizer decided to focus on anticancer drugs to return to growth and did so by acquiring the oncology company Seagen last year for $43 billion. The deal brought the group additional revenues of $845 million in the quarter, which exceeded expectations. It now remains to be seen whether this investment will be enough to revive the stock on the stock exchange.