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Jul 02, 2023

Pfizer Q2 2023 Earnings Report

Second quarter results were reported, revenues declined due to decrease in Paxlovid and Comirnaty revenues, but non-COVID revenues grew, and 2023 revenue guidance was narrowed.

Key Takeaways

Pfizer's Q2 2023 revenues were $12.7 billion, a 53% operational decrease driven by declining Paxlovid and Comirnaty revenues. Excluding these, revenues grew 5% operationally. Reported EPS was $0.41, and adjusted EPS was $0.67. The company narrowed its 2023 revenue guidance to $67-$70 billion and adjusted non-COVID operational revenue growth expectation to 6-8%.

Second-Quarter 2023 Revenues of $12.7 Billion, a 53% operational decrease driven by expected decline in Paxlovid and Comirnaty revenues.

Excluding contributions from Comirnaty and Paxlovid, revenues grew 5% operationally.

Second-Quarter 2023 Reported Diluted EPS of $0.41, a Year-Over-Year Decline of 77%, and Adjusted Diluted EPS of $0.67, a Year-Over-Year Decline of 67%.

2023 Revenue Guidance range was narrowed to $67 to $70 Billion and 2023 Non-COVID Operational Revenue Growth Expectation was adjusted to 6% to 8%.

Total Revenue
$12.7B
Previous year: $27.7B
-54.1%
EPS
$0.67
Previous year: $2.04
-67.2%
SI&A Expenses
$3.5B
Previous year: $3.05B
+14.7%
R&D Expenses
$2.65B
Previous year: $2.82B
-5.9%
Effective Tax Rate
-3.1%
Previous year: 13.7%
-122.6%
Gross Profit
$8.14B
Previous year: $18.7B
-56.4%
Cash and Equivalents
$2.63B
Previous year: $1.78B
+47.9%
Free Cash Flow
-$2.12B
Previous year: $7.42B
-128.6%
Total Assets
$220B
Previous year: $195B
+12.7%

Pfizer

Pfizer

Pfizer Revenue by Segment

Pfizer Revenue by Geographic Location

Forward Guidance

Pfizer narrowed its 2023 revenue guidance range to $67 to $70 billion and maintains adjusted diluted EPS guidance of $3.25 to $3.45. Non-COVID operational revenue growth is expected to be 6% to 8%.

Positive Outlook

  • Maintaining guidance for Adjusted diluted EPS(3).
  • Focus on ensuring successful fall vaccinations during the respiratory infection season.
  • Continuing to make progress toward proposed acquisition of Seagen.
  • Expecting to deliver robust operational growth in 2025 and beyond.
  • Building momentum in 2023, recently attaining key milestones for several products.

Challenges Ahead

  • Expected revenue declines for Pfizer’s COVID-19 products.
  • Short-term headwinds, such as the U.S. approval for the Talzenna plus Xtandi combination for the treatment of adult patients with homologous recombination repair (HRR) gene-mutated metastatic castration-resistant prostate cancer (mCRPC), versus an approval in the all-comers population.
  • Shared clinical decision-making recommendation for Abrysvo from the U.S. Centers for Disease Control and Prevention’s (CDC) Advisory Committee on Immunization Practices (ACIP), versus a routine recommendation.
  • Recent tornado damage to Pfizer’s manufacturing facility in Rocky Mount, N.C.
  • Changes in foreign exchange rates have had a minimal incremental impact since full-year 2023 guidance was issued.