Pfizer Inc (NYSE:PFE) is scheduled to release its first quarter 2025 earnings on 29 April.

Analysts forecast adjusted earnings of 70 cents per share with sales of $14.26 billion.

BofA updated its earnings model for 1Q25 as analyst Tim Anderson lowered total revenue estimates by -2.1%, primarily due to updated assumptions regarding the impact of Part D on the portfolio and tweaks to Paxlovid seasonality. EPS follows, decreasing by -4.9%.

For 2025 and 2026, BofA increased total revenue estimates slightly (<1%), partly related to updated FX assumptions and smaller product-level revisions. The analyst increased EPS estimates by +1.2% and +5.3%.

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Citing a relative pharma group whose P/E multiple has recently declined due to tariff and drug pricing fears, BofA has reduced Pfizer’s price target from $29 to $26, reiterating its Neutral rating.

Pfizer’s stock is trading at about 7 times its expected 2024 earnings, which is lower than the peer average of around 11 times (excluding Eli Lilly and Co. (NYSE: LLY)).

It also offers a high dividend yield of about 8%, which could help keep the stock price from falling much further. The BofA analyst notes that the long-term growth outlook is weaker than average due to upcoming patent expirations and rising competition for some of its key products.

Anderson says the focus of the earnings call will likely include:

• A few months into the new administration, there is still uncertainty about how agencies like the Department of Health and Human Services (HHS) and the Centers for Medicare & Medicaid Services (CMS) will operate under new leadership.
  • This matters for Pfizer, as around 12% of its total revenue comes from vaccine sales in the U.S. So far, the company's 2025 guidance does not factor in any potential changes to U.S. health policy.
• Pfizer has manufacturing facilities in Belgium, Germany, India, Ireland, Italy, Japan, and Singapore. Like many other companies, it hasn't commented yet on how possible pharmaceutical tariffs might affect its profit margins or earnings per share. Analysts will likely get the best chance to ask management about this during the first-quarter 2025 earnings call.
  • “Our belief is that most/all companies will likely not quantify any potential impact at the moment,” Anderson writes.
• After the recent setback with danuglipron, the company still has an oral GLP-1 drug in early development and a GIPR blocker in Phase 2 trials.
  • However, if Pfizer is serious about expanding in the obesity space, it will likely need to consider mergers, acquisitions, or other business deals to strengthen its position.

Price Action: PFE stock is down 0.88% at $21.95 at the last check Monday.

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