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Pfizer beats Q1 profit estimates and revises 2022 earnings outlook

Pfizer Inc (NYSE:PFE) had a stellar first quarter in terms of profit, which grew by 61% to $7.8 billion on the sales of its COVID-19 vaccine, which reached $13 billion. The company, however, adjusted its earnings per share outlook for this year by 10 cents.

Pfizer’s earnings report

As reported by ABC News, Pfizer expects readjusted earnings of $6.25 to $6.45 per share, down from $6.35 to $6.55 per share. Meanwhile, analysts estimate earnings of $7.14 per share.

The lower earnings guidance is due to rising research and development costs and the strengthening of the U.S. dollar. Still, the company is aiming at $98 billion to $102 billion in total sales this year.

But the pharma giant also had a solid first quarter in terms of revenue, which hit $25 billion or a 77% increase from the same period last year. Refinitiv estimates had pointed to $23.8 billion.

The company said the welcoming quarter results were driven by the sales of booster shots and the development of the vaccine for children.

Vaccine sales outlook

For the year 2022, financial results are bound to rely on Covid vaccine sales. Pfizer has anticipated sales of $32 billion in vaccine sales and $22 billion for Paxlovid, the company’s antiviral treatment.

Chairman and CEO Albert Bourla told analysts Tuesday, “We are seeing strong signs for increasing demand for Paxlovid.”

Pfizer’s Covid shot is at the top of applications in both the U.S. and the European Union, while the company seeks authorization for the three-dose vaccine for under-five-year-olds. Mikael Dolsten, the firm’s chief scientific officer, said Pfizer would submit third-dose data by the end of May or early June.

As reported by The Guardian, a pharma campaigner from Global Justice Now has accused Pfizer of profiteering on the huge sales of its Covid vaccine and treatments.

Tim Bierley said, “Throughout the pandemic, Pfizer has refused to share its technology and know-how. Instead, it has maintained monopoly control over its vaccine and treatment, keeping a chokehold on global supply.”

Author

Jacob Wolinsky

Jacob Wolinsky is the founder of ValueWalk, a popular investment site. Prior to founding ValueWalk, Jacob worked as an equity analyst for value research firm and as a freelance writer. He lives in Passaic New Jersey with his wife and four children.

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