Pfizer (NYSE:PFE) has disclosed its adjusted earnings per share for the fourth quarter of 2023 at 10 cents, a significant turnaround compared to the anticipated loss of 19 cents per share according to the Consensus Estimate. However, this marks a notable decline from the earnings of $1.41 per share recorded in the same quarter of the previous year.

Revenues for the quarter amounted to $14.25 billion, registering a 41% drop from the corresponding quarter in the prior year on a reported basis. This reflects a 42% operational decline, offset by a 1% currency benefit. Despite this, total revenues fell short of the Consensus Estimate of $14.37 billion.

The decline in revenues can be attributed to a substantial decrease in sales of Pfizer’s COVID-19 products, Comirnaty and Paxlovid, owing to reduced demand.

Pfizer records both direct sales and alliance revenues from its partner, BioNTech (NASDAQ:BNTX), for the COVID-19 vaccine, Comirnaty, and product revenues from its oral antiviral pill for COVID, Paxlovid. International revenues witnessed a 39% decrease, reaching $9.66 billion, while U.S. revenues fell by 46% to $4.59 billion.

Adjusted selling, informational, and administrative (SI&A) expenses rose by 1% (operationally) in the quarter to $4.47 billion, while adjusted research and development (R&D) expenses saw a 24% decline, settling at $2.77 billion.

Segment-wise Performance

Primary Care: Direct sales and alliance revenues from BioNTech for Comirnaty in this segment amounted to $5.36 billion, marking a 54% year-over-year decrease.

Paxlovid revenues experienced a negative trend, reaching -$3.2 billion in the quarter due to a non-cash revenue reversal.

Specialty Care: Global Vyndaqel family revenues increased by 39% year over year, reaching $961 million.

Xeljanz sales remained flat at $493 million, while Enbrel revenues declined by 12% to $203 million.

Oncology: Ibrance revenues in Oncology declined by 13% year over year to $1.19 billion.

Newly acquired products from Seagen, such as Adcetris, Padcev, Tukysa, and Tivdak, contributed $46 million, $52 million, $17 million, and $4 million, respectively, to Pfizer’s oncology revenues in the fourth quarter.

Full-Year 2023 Results: For the full year 2023, Pfizer reported a 42% decline in sales, amounting to $58.5 billion, surpassing the Consensus Estimate of $60.07 billion. Excluding COVID-19 products, Paxlovid and Comirnaty, revenues grew by 7% operationally, aligning with the full-year 2023 non-COVID operational revenue growth target of 6% to 8%.

Adjusted earnings for 2023 were $1.84 per share, marking a 72% year-over-year decrease. However, earnings exceeded the Consensus Estimate of $1.38 per share.

2024 Guidance

Pfizer has maintained its revenue and profit guidance for 2024, expecting total revenues to range between $58.5 billion and $61.5 billion, almost flat compared to 2023 levels. The guidance includes potential combined revenues of $8 billion for Paxlovid and Comirnaty, along with $3.1 billion from Seagen.

The company anticipates better non-COVID operational revenue growth in the future, driven by key products and launches, both existing and new acquisitions.

Despite the challenges posed by declining COVID-19 product sales, Pfizer remains optimistic about its overall portfolio, expecting growth in the coming quarters. The company’s focus on cost-cutting measures, internal restructuring, and innovative product offerings are expected to contribute to its resilience in the market.

Please note that Pfizer’s shares experienced a pre-market increase of over 1%, and over the past year, the stock has declined by 36.9%, contrasting with a 19.8% increase for the industry.

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