Pfizer’s first quarter earnings topped expectations despite a significant decline in its COVID-related sales during the first three months of 2023.
The New York-based pharmaceutical giant reported a 29% decrease in revenue year-over-year from $25.6 billion to $18.3 billion, noting that the decline in revenue from its COVID-19 vaccine Comirnaty drove a 26% operational decrease during the quarter.
Excluding contributions from Comirnaty and Paxlovid, the company’s COVID-19 antiviral medication, Pfizer said its revenues grew by $563 million or 5% operationally.
First quarter Comirnaty and Paxlovid revenues were $7.1 billion, a 75% or $10 billion decline from the year-ago quarter, which Pfizer said was driven by lower deliveries and demand in international markets, and lower US government contracted deliveries with the anticipated transition to commercial market sales in the second half of 2023.
Adjusted earnings per share were down 24% from the year-ago quarter at $1.23.
However, analysts, on average, had expected earnings per share of $0.98 on $16.6 billion in sales, per FactSet.
Pfizer also reaffirmed its full-year 2023 revenue guidance of $67 billion to $71 billion and adjusted earnings per share of $3.25 to $3.45.
Some analysts had speculated that the company would lower its forecasts on continued weakening demand for COVID vaccines.
"Our first-quarter results were in line with our expectations, underlining our continued confidence in achieving 7% to 9% operational revenue growth for fiscal year 2023, excluding our COVID-19 products and anticipated foreign exchange impacts,” commented Pfizer CFO David Denton in a statement.
“We expect the majority of this growth to occur in the second half of 2023, given the timing of our expected near-term launches.”
Shares of Pfizer had slipped 0.2% to US$39.12 shortly before the market opened in New York on Tuesday.
Contact the author at emily.jarvie@proactiveinvestors.com
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