Pfizer Inc (NYSE: PFE) reported better-than-anticipated fiscal 2022 first-quarter earnings and revenue, mirroring an 82% increase in operational revenue. The third-largest pharmaceutical company in the world also slashed its FY 2022 adjusted earnings view, mainly due to a change in accounting procedures. However, the company reaffirmed its FY 2022 revenue outlook. Following the results, the stock gained 1.97% or $0.95 to close at $49.29.
The New York-based company reported first-quarter revenue of $25.66 billion, an increase of 76.70% from $14.52 billion in the similar period last year. Analysts surveyed by Refinitiv had anticipated Pfizer to post revenues of $23.86 billion for the reported period.
Excluding the performance of Paxlovid and Comirnaty, the company posted an operational growth of 2%. Pfizer has stated that its revenue growth was led mainly by the Prevnar family (US), Vyndaqel, Comirnaty, Paxlovid, Eliquis, and Oncology Biosimilars (US).
During 1Q 2022, the company’s earnings aggregated $7.86 billion, or $1.37 a share, compared with a $4.88 billion, or $0.86 per share, in 1Q 2021.
Excluding items, Pfizer posted Q1 2022 adjusted earnings of $9.34 billion, or $1.62 per share, an increase from $5.351 billion, or $0.95 a share in Q1 2021. Analysts polled by Refinitiv had forecast Pfizer to record earnings of $1.47 a share.
Segment-wise,
- Vaccines revenues jumped to $14.941 billion, from $4.894 billion in the prior-year period. Specifically, Comirnaty sales surged to $13.23 billion, from $3.462 billion last year. Prevnar family revenues increased 22% y-o-y to $1.565 billion.
- Hospital revenues were $3.191 billion, an increase of 69% from last year.
- Oncology sales grew by 4% y-o-y to $2.967 billion. Ibrance revenues remained flat at $1.237 billion.
- Internal medicine revenues were $2.440 billion, a decrease of 6% from the prior-year period.
- Rare disease revenues were $963 million, up 17% from $824 million last year.
- Inflammation & Immunology revenues decreased 23% y-o-y to $821 million.
- Pfizer Centreone’s revenues were $338 million, down 13% from the previous year.
Looking ahead, the company downwardly amended its FY 2022 adjusted earnings per share to a range of between $6.25 per share to $6.45 a share, mirroring a negative effect of $0.11 per share due to change in accounting practices. The latest change will include all expenses related to research and development in adjusted earnings. Notably, the earlier guidance called for adjusted earnings in the range of $6.35 per share to $6.55 per share.
Pfizer also reaffirmed its earlier FY 2022 revenue outlook of $98 billion to $102 billion.
Also, Pfizer anticipates generating revenues of about $32 billion from Comirnaty and $22 billion from Paxlovid in FY 2022.
With respect to the COVID-19 drug, the company revealed that it is on course to deliver a minimum of 2 billion doses in the 2021-22 timeframe, including a minimum of 1 billion doses this year.
During the March 2022 quarter, Pfizer paid $4.20 billion to investors in the form of share repurchases and dividends. Specifically, the company paid $2.20 billion in cash dividends and $2 billion through share repurchases.
Additionally, Pfizer revealed that it had bought 39.10 million shares at the cost of $51.10 per share in the secondary market. Pfizer now has $3.30 billion worth of share repurchases as of May 3, 2022.
The quarterly earnings beat and downward revision of FY 2022 earnings are expected to keep the stock of Pfizer range-bound in the short term.
The historical price chart indicates that the stock of Pfizer is ascending after testing the support at 47. The next resistance is anticipated only near 55. Additionally, the stock is trading above its 50-day moving average, while the stochastics RSI is rising towards the bullish region. Therefore, we are anticipating the stock to remain in an uptrend in the short term.
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