Why did PFE's Q2 2024 earnings beat forecasts?

Pfizer's Q2 2024 earnings exceeded forecasts due to cost-cutting measures and increased sales of non-COVID products:

1. Cost-Cutting Measures: Pfizer has implemented significant cost-cutting initiatives, including a $4 billion purchase of Seagen, a $4 billion cost-cut plan, and a new multi-year program to reduce expenses by about $1.5 billion by the end of 2027. These measures have begun to yield results, contributing to the company's improved financial performance.
2. Sales of Non-COVID Products: Pfizer's oncology revenues grew 19% operationally over the same quarter a year ago, driven by successful acquisitions and product launches. The company's non-COVID product portfolio, including Eliquis and Prevnar, has shown growth, contributing to the revenue mix. Additionally, the Vyndaqel family of treatments grew 65% combined.
3. Paxlovid and Comirnaty Sales: Although sales of Paxlovid and Comirnaty, Pfizer's COVID-19 antiviral treatment and vaccine, contributed to the revenue, the decline in demand for these products was offset by cost management and sales of other products. Paxlovid's sales were $727 million, up from the year-ago quarter, and Comirnaty's sales were $3.4 billion, down 38%. The company expects about 90% of vaccine sales to occur in the second half, mostly in the fourth quarter.

In summary, Pfizer's Q2 2024 earnings beat forecasts due to cost-cutting measures, increased sales of non-COVID products, and the contribution of Paxlovid and Comirnaty sales.