Pfizer (PFE) is expected to post a 41% year-over-year decline in earnings as revenue likely decreased on lower demand for its vaccines and COVID-19-related products.
Key Takeaways
- Pfizer expected to report diluted EPS declined about 41% to 80 cents from $1.37.
- A continued decline in COVID-19 vaccines and related products caused a 34% revenue decline.
- The company’s acquisition of Seagen will be key in 2023, adding to pipeline and revenue
The drugmaker is expected to report diluted earnings per share of 80 cents versus $1.37 in the prior year-quarter, according to estimates compiled by Visible Alpha. The company will likely say its net income came in at $4.6 billion, compared with last year’s $7.8 billion, with total revenues down 34% over the same period to $16.44 billion. Pfizer will report its first quarter performance on May 2, 2023.
| Q1 FY2023 (Projection) | Q1 FY2022 | Q1 FY2021 | |
| Total Revenue ($M) | 16,448 | 25,661 | 14,516 |
| Earnings Per Share ($) | 0.80 | 1.37 | 0.86 |
| Vaccine & Covid-19 Revenue | 6,836 | 14,941 | 4,894 |
The latest earnings will be Pfizer’s first since announcing the $43 billion acquisition of Seagen, a leading oncology company. Seagen is expected to generate approximately $2.2 billion of revenue in 2023, and Pfizer believes it can contribute over $10 billion in revenue by 2030. Pfizer also held an investor day in December, highlighting its near-term pipeline which it hopes will contribute up to $20 billion in revenue in 2030. One of those is for the respiratory RSV disease, which the FDA will vote on in May after rival drugmaker GSK had its own treatment approved last month.
Pfizer shares were down more than 21% over last year, heavily underperforming the broader S&P500 Healthcare Sector index, which was up 0.31% for the same period.
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The Key Metric
Analysts will be watching closely for the company’s Vaccine & COVID-19 products revenue which is expected to post a sharp decline of 54% year-over-year, from $14.94 billion to $6.84 billion. However, the company said that revenue from COVID-19 products are expected to grow in 2024 after governments had large supplies on hand ahead of 2023.
