Pfizer Q4 Results: Revenue rises by 2x but still misses estimates

Pfizer
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Revenue - The revenue reported by Pfizer for the December quarter was at $23.8 billion, slightly below the Street estimate of $24.12 billion. The overall sales increased by 105% from the year-ago period. Higher sales were driven by the sales of Pfizer and German partner BioNTech’s BNTX COVID-19 vaccine, Comirnaty. International revenue increased to $16.2 billion, a rise of 181%. US revenue rose 32% to $7.68.

Earning - The Earning Per Share for Q4 came at $1.08 per share which is higher than street estimates of 0.85 cents per share. Earnings increased 152% YoY.

Other updates - Adjusted selling, informational and administrative (SI&A) expenses rose 10% (operationally) in the December quarter to $3.94 billion. Adjusted R&D expenses rose 14% to $3.5 billion due to costs related to the development of COVID-19 treatment programs and other pipeline medicines.

Update on Paxlovid - In the last week of December 2021, the FDA granted Emergency Use Authorization (EUA) to Paxlovid, for the treatment of mild-to-moderate COVID-19 in patients at increased risk of hospitalizations or death. Paxlovid contributed $76 million to US sales in the fourth quarter of 2021.

2022 Outlook - The company expects revenue to be between $98 billion and $102 billion. The revenue guidance is below analysts' expectations of $108.6 billion. The revenue guidance includes approximately $32.0 billion in sales from Comirnaty and $22 billion from Paxlovid. The Comirnaty sales guidance was more than the previous expectations of $29 billion.

Adjusted earnings per share are expected to be in a range of $6.35 to $6.55. Research and development expenses are expected to be between $10.5 and 11.5 billion. SI&A spending is expected in the range of $12.5-$13.5 billion. The adjusted tax rate is expected to be approximately 16% in 2022.

Target price - The 20 analysts offering 12-month price forecasts for Pfizer Inc have a median target of $58.75, with a high estimate of $76 and a low estimate of $49. T

Pfizer Q4 Results Review

Pfizer has reported a mixed set of numbers for the last quarter of 2021. It has beat estimates for the bottom line but failed to meet estimates for the topline. The 2022 guidance also fell short of analysts' expectations. The share price  closed 2.84% lower at $51.70 per share.

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