Pfizer Q3 2023 Earnings Report
Key Takeaways
Pfizer's Q3 2023 revenues decreased by 41% operationally to $13.2 billion, driven by lower sales of Paxlovid and Comirnaty, though non-COVID product revenues increased by 10%. The company reported a diluted loss per share of $(0.42), significantly impacted by $5.6 billion in non-cash inventory write-offs. Pfizer reaffirmed its full-year 2023 revenue guidance of $58.0 to $61.0 billion and adjusted diluted EPS guidance of $1.45 to $1.65. A new cost realignment program was initiated to deliver at least $3.5 billion in annual net cost savings.
Q3 2023 revenues totaled $13.2 billion, a 41% operational decrease due to declining Paxlovid and Comirnaty revenues.
Non-COVID product revenues grew 10% operationally, driven by new launches and in-line product growth.
Reported diluted loss per share was $(0.42), significantly impacted by $5.6 billion in non-cash inventory write-offs.
Full-year 2023 guidance reaffirmed, with revenues expected between $58.0 and $61.0 billion and adjusted diluted EPS between $1.45 and $1.65.
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Pfizer Revenue by Segment
Pfizer Revenue by Geographic Location
Forward Guidance
Pfizer reaffirms its full-year 2023 guidance for revenues of $58.0 to $61.0 billion and adjusted diluted EPS of $1.45 to $1.65. The guidance includes a non-cash revenue reversal of approximately $4.2 billion related to the return of an estimated 7.9 million treatment courses of U.S. government EUA-labeled Paxlovid and a non-cash charge of $5.6 billion recorded to Cost of Sales for COVID products inventory write-offs and other charges. Excluding COVID-19 products, Pfizer is expecting 6% to 8% operational revenue growth in 2023.
Positive Outlook
- Reaffirms full-year 2023 revenue guidance of $58.0 to $61.0 billion.
- Reaffirms full-year 2023 adjusted diluted EPS guidance of $1.45 to $1.65.
- Expects 6% to 8% operational revenue growth from non-COVID products in 2023.
- Launched a cost realignment program expected to deliver at least $3.5 billion in annual net cost savings.
- Expects approximately $1.0 billion of cost savings to be realized in 2023 from the cost realignment program.
Challenges Ahead
- Includes a non-cash revenue reversal of approximately $4.2 billion related to the return of Paxlovid treatment courses.
- Includes a non-cash charge of $5.6 billion recorded to Cost of Sales for COVID products inventory write-offs.
- Anticipates a negative revenue impact of approximately $0.2 billion due to generic and biosimilar competition.
- Midpoint of revenue guidance reflects a 40% operational decrease compared to 2022 revenues.
- Midpoint of adjusted diluted EPS guidance reflects a 74% operational decrease compared to 2022.