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Dec 31, 2020

Pfizer Q4 2020 Earnings Report

Pfizer reported fourth-quarter and full-year 2020 results, raised 2021 guidance for Adjusted diluted EPS, and provided 2021 financial guidance for other Adjusted income statement line items.

Key Takeaways

Pfizer's Q4 2020 revenues reached $11.7 billion, reflecting an 11% operational growth. The company's adjusted diluted EPS for Q4 2020 was $0.42. Key growth drivers included Vyndaqel/Vyndamax, Eliquis, and oncology biosimilars. Pfizer also raised its full-year 2021 guidance for adjusted diluted EPS to a range of $3.10-$3.20.

Fourth-Quarter 2020 Revenues of $11.7 Billion, Reflecting 11% Operational Growth.

Fourth-Quarter 2020 Reported Diluted EPS of $0.10, Adjusted Diluted EPS of $0.42.

Full-Year 2020 Revenues of $41.9 Billion, Reflecting 3% Operational Growth.

Raises Full-Year 2021 Guidance for Adjusted Diluted EPS to a range of $3.10-$3.20.

Total Revenue
$11.7B
Previous year: $12.7B
-7.9%
EPS
$0.42
Previous year: $0.55
-23.6%
SI&A Expenses
$3.76B
R&D Expenses
$3.35B
Effective Tax Rate
-95.9%
Gross Profit
$8.77B
Previous year: $10.1B
-13.0%
Cash and Equivalents
$1.79B
Previous year: $1.12B
+59.3%
Free Cash Flow
$4.84B
Previous year: $3.1B
+56.3%
Total Assets
$154B
Previous year: $168B
-8.0%

Pfizer

Pfizer

Pfizer Revenue by Geographic Location

Forward Guidance

Pfizer raised its guidance range for Adjusted Diluted EPS to $3.10 to $3.20 and provided 2021 financial guidance for other income statement line items.

Positive Outlook

  • Revenues: $59.4 to $61.4 billion
  • Adjusted Cost of Sales as a Percentage of Revenues: 32.0% to 33.0%
  • Adjusted SI&A Expenses: $11.0 to $12.0 billion
  • Adjusted R&D Expenses: $9.2 to $9.7 billion
  • Adjusted Other (Income)/Deductions: Approximately $2.2 billion of income

Challenges Ahead

  • Effective Tax Rate on Adjusted Income: Approximately 15.0%
  • Adjusted Diluted EPS: $3.10 to $3.20
  • Does not assume the completion of any business development transactions not completed as of December 31, 2020.
  • Includes Pfizer’s pro rata share of the Consumer Healthcare joint venture anticipated earnings, which is recorded in Adjusted other (income)/deductions on a one-quarter lag.
  • Reflects an anticipated negative revenue impact of $1.0 billion due to recent and expected generic and biosimilar competition for certain products that have recently lost or are anticipated to soon lose patent protection.

Revenue & Expenses

Visualization of income flow from segment revenue to net income