Pfizer Stock Up 5% as 2025 Guidance Meets Investor Expectations

Core Viewpoint - Pfizer's stock rose nearly 5% following the announcement of its 2025 revenue guidance, projecting total revenues between $61.0 billion and$64.0 billion, which aligns with investor expectations [1][2]. Financial Guidance - For 2025, Pfizer expects total revenues of $61.0 to$64.0 billion and adjusted earnings between $2.80 and$3.00 per share, with the Zacks Consensus Estimate at $62.86 billion and$2.90 per share respectively [1][2]. - The 2024 financial guidance remains unchanged, with total revenues projected in the same range as 2025 and adjusted earnings expected between $2.75 and$2.95 per share [2]. Revenue and Earnings Projections - Excluding COVID product revenues, Pfizer anticipates a 9% to 11% operational revenue increase in 2024 [2]. - The adjusted earnings guidance for 2025 indicates a year-over-year operational growth of 10% to 18% from the midpoint of 2024 guidance [6]. Cost Management and Savings - Pfizer achieved $4 billion in savings through cost cuts and restructuring in 2024, with an additional$500 million expected in 2025 [8]. Market Position and Product Performance - Despite a decline in COVID-related revenues, Pfizer's non-COVID operational revenues improved in the first three quarters of 2024, driven by key products like Vyndaqel and Eliquis, as well as new launches and acquisitions [9]. - The acquisition of Seagen has strengthened Pfizer's oncology position, contributing $2.3 billion in sales in the first nine months of 2024, a 38% increase on a proforma basis [10]. Challenges Ahead - Pfizer faces challenges from declining sales of COVID-19 products and anticipates significant impacts from patent expirations between 2026 and 2030 [11].