Pfizer (PFE, Financial) stock dropped more than 2% at the start of the stock market opening Tuesday after the company posted a better-than-expected fourth-quarter 2024 earnings report. The firm reported adjusted earnings per share (EPS) of $0.63, up 530% from last year and flying far above Wall Street's view of $0.47. Total revenue grew 22% to $17.76 billion on the strength of strong COVID-19 product sales and contribution from the Seagen acquisition of $43 billion.
Investors are still cautious even though it was an earnings beat. However, Pfizer stock has since fallen 50% below its pandemic peak, and it is concerned about upcoming patent expirations and a projection that its Medicare plans will hurt by $1 billion. Sales of Paxlovid rebounded back to $727 million thanks to U.S. winter demand, but the vaccine company revenue plunged 38% to $3.4 billion, beating expectations.
Pfizer reiterated its 2025 revenue of $61 billion to $64 billion and an EPS range of $2.80 to $3.00. While analysts still differ in their outlook, they worry about integration costs, patent cliffs, and whether Pfizer can keep buoying up non-COVID growth. Wall Street has a keen eye for execution risks and a bias toward cost-cutting as well as oncology expansion.
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