Pfizer’s Q2 Earnings Miss On Revenue As Demand Falls For Covid Vaccine
Key takeaways
- Pfizer’s Q2 earnings fell short on revenue expectations, but won on earnings per share
- The pharma titan plans on launching new drugs to boost revenue and combat pending patent expirations
- Pfizer’s share price fell 1.3% in premarket trading at the news, but recovered throughout Tuesday
Pfizer’s second-quarter earnings beat wasn’t as strong as some had hoped, with the Big Pharma giant and pandemic hero missing its revenue target. Covid vaccine sales would inevitably flag, but Pfizer plans to combat the softened demand and pending drug patent expirations. Here’s the latest.
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What happened with Pfizer’s Q2 earnings?
Pfizer’s revenue was $12.7 billion for the second quarter, which fell short of the $13.4 billion analysts predicted. The pharmaceutical giant also downgraded its full-year estimate, stating it now anticipates operational revenue growth of 6–8% instead of the 7–9% previously touted.
However, earnings per share were up, arriving at 67 cents a share against 57 cents expected. Pfizer also expects to bring in $20 billion through new drug launches and $25 billion through M&A activity as it braces for seven of its key products’ patents to expire by 2030.
Sales for Covid vaccines will likely continue to weaken once they’re available commercially rather than through government contracts. But Pfizer CEO, Albert Bourla, said the company had a plan to “[build] out our plans for the post-Covid crisis era”.
Wall Street’s reaction
At the news, Pfizer shares dropped 1.3% during premarket trading before recovering somewhat throughout Tuesday. The share price has declined nearly 4% over the last five days, adding to an already dismal year for Pfizer investors. Since the start of this year, Pfizer shares have tumbled 30%.
Pfizer isn’t the only pharmaceutical company suffering the same fate. Moderna’s share price has fallen 37% in 2023, while Johnson & Johnson has suffered a 4% drop. AstraZeneca has only made a 1.6% gain in seven months.
The bottom line
Pfizer is actually looking in pretty good shape, but the Covid-shaped hole that sent revenues soaring during the pandemic has skewed the results. Investors will likely need to play the long game with Pfizer stock to see returns — and the pressure for Pfizer’s new drugs to deliver profit is on.
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