Pfizer Sees 2025 Profits in Line with Estimates, Shares Rise 2%
Pfizer’s CEO, Albert Bourla, recently visited the production of the Pfizer-BioNtech Covid-19 vaccine at a factory in Belgium. (Photo: John Thys | Reuters)
Pfizer forecasted 2025 profits roughly in line with Wall Street expectations, offering some relief to investors after a tumultuous year. The company expects adjusted profit to be in the range of $2.80 to $3 per share, compared with analysts’ average estimate of $2.88 per share.
Additionally, Pfizer expects sales of its Covid-19 vaccine and drug to be consistent with 2024 levels. The company is reining in costs and shedding non-core businesses to pay down debt as it rebuilds itself after a sharp slump in sales of Covid-19 products. Its shares have fallen nearly 12% this year and trade at less than half their value during the peak of the Covid-19 pandemic.
Pfizer’s forecast comes as the company faces criticism from activist hedge fund Starboard Value, which has accused the company’s management of over-spending on big acquisitions and failing to produce profitable new drugs from those deals or internal research and development.
The company also forecast 2025 revenue in the range of $61 billion to $64 billion, which is slightly lower than the estimates of $63.26 billion. Furthermore, Pfizer estimated a roughly $1 billion hit to its revenue from changes to Medicare’s Part D prescription program under President Biden’s Inflation Reduction Act.
Pfizer is set to hold a conference call with analysts later in the day to discuss the forecast.