Pfizer Stock Up 5% as 2025 Guidance Meets Investor Expectations

Pfizer's PFE stock rose almost 5% on Tuesday after it announced an encouraging guidance for 2025.Pfizer projected total revenues between $61.0 billion and $64.0 billion. The Zacks Consensus Estimate for the metric is pegged at $62.86 billion. Adjusted earnings are expected in the range of $2.80 to $3.00. The Zacks Consensus Estimate is pegged at $2.90 per share.The company’s sales and earnings projections for 2025 were within investor expectations. Many analysts believe the guidance is achievable.Pfizer also maintained its previously issued financial guidance for 2024. Pfizer expects total revenues in 2024 to be in the range of $61.0 to $64.0 billion while adjusted earnings are expected in the range of $2.75 to $2.95 per share. Excluding revenues from its COVID products, Comirnaty and Paxlovid, Pfizer expects total revenues to increase 9% to 11% on an operational basis in 2024.Pfizer’s stock has declined 8.2% in the year-to-date period against an increase of 5.3% for the industry.Image Source: Zacks Investment ResearchPFE’s 2025 Guidance in DetailOn an operational basis, revenues in 2025 are expected to be approximately flat to up 5% from the midpoint of 2024 guidance, excluding the impact of approximately $1.2 billion of non-recurring revenues for Paxlovid. The 2024 baseline guidance, excluding the impact of the non-recurring revenues from Paxlovid, is $59.8 million-$62.8 million.COVID revenues in 2025 are expected to be similar to the expected range for 2024, excluding the $1.2 billion in one-time benefits from Paxlovid. The 2025 revenue guidance also includes an unfavorable impact of approximately $1 billion from the Medicare Part D redesign under the Inflation Reduction Act (IRA).The adjusted earnings guidance of $2.80 to $3.00 per share represents an expected operational growth (excluding Fx impact) of 10% to 18% year over year from the midpoint of the 2024 guidance, excluding the impact of certain non-recurring items. The 2024 baseline guidance excluding the impact of certain non-recurring items is $2.45 per share–$2.65 per share.Adjusted operating margin is expected to increase by around 250 basis points from the 2024 level.Research and development expense is expected to be in the range of $10.7 to $11.7 billion in 2025. SI&A spending is expected in the range of $13.3 billion to $14.3 billion, a reduction of $500 million versus our 2024 guidance. The adjusted tax rate is expected to be approximately 15% in 2025.Pfizer’s cost cuts and internal restructuring delivered savings of $4 billion in 2024, as expected. In addition, the company expects to generate an additional $500 million of savings in 2025 from the ongoing cost savings program.PFE is Slowly Making a ComebackAfter a couple of tough years, it seems that Pfizer’s worst slowdown is over now, and the company is gradually making a comeback.Though COVID revenues are declining, Pfizer’s non-COVID operational revenues improved in the first three quarters of 2024, driven by its key in-line products like Vyndaqel and Eliquis, new launches and newly acquired products from Seagen.Pfizer’s position in oncology was strengthened with the addition of Seagen, which generated sales of $2.3 billion in the first nine months of 2024, up 38% on a proforma basis.Pfizer faces its share of challenges, the key being declining sales of its COVID-19 products. Pfizer also expects a significant impact from the loss of patent exclusivity in the 2026-2030 period, as several of its key products will face patent expirations. However, its non-COVID drugs and contribution from new and newly acquired products and cost discipline have started to drive growth, with the trend expected to continue in 2025 as signaled by the guidance ranges for the year.PFE’s Zacks Rank and Stocks to ConsiderPfizer has a Zacks Rank #3 (Hold).Pfizer Inc. Price and Consensus Pfizer Inc. price-consensus-chart | Pfizer Inc. QuoteSome better-ranked drugmakers are Novartis NVS, Gilead GILD and Exelixis EXEL, with a Zacks Rank #2 (Buy) each.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Estimates for Novartis’ 2024 earnings have risen from $7.53 to $7.65 per share over the past 60 days. For 2025, earnings estimates have risen from $8.29 to $8.43 per share over the same timeframe. Year to date, Novartis’ stock has declined 1.8%.Novartis beat estimates in three of the last four quarters while missing in one, delivering an average earnings surprise of 2.22%.Estimates for Gilead’s 2024 earnings per share have increased from $3.77 to $4.36 over the past 60 days, while those for 2025 have risen from $7.27 to $7.55 per share. Gilead’s shares have risen 14.6% year to date.Gilead beat estimates in three of the last four quarters while missing in one, delivering an average earnings surprise of 15.46%.The Zacks Consensus Estimate for Exelixis’ earnings has risen from $1.83 to $1.93 per share for 2024 over the past 60 days, while that for 2025 has risen from $1.85 to $2.00 per share over the same timeframe. Exelixis’ shares have risen 44.6% year to date.Exelixis beat estimates in three of the last four quarters while missing in one, delivering an average earnings surprise of 26.52%.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. 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