How did PFE's Q3 2024 earnings surprise investors?

Pfizer Inc.'s (PFE) Q3 2024 earnings report surprised investors in several ways, reflecting both the challenges and the resilience of the company's business model amid market shifts and strategic changes.

1. **Revenue Growth and Positive Analyst Adjustments**:
- Pfizer's total revenue for Q3 2024 was $17.7 billion, surpassing analysts' expectations of $12.96 billion. This marked a significant year-over-year growth, which is a positive indicator of the company's performance and market traction of its non-COVID-related products like Eliquis and Vyndaqel.
- The company's earnings per share (EPS) for the quarter was $0.60, which exceeded analysts' estimates of $0.46. This beat on expectations contributed to a surge in Pfizer's stock price, reflecting investor confidence in the company's financial performance.
2. **Increased EPS Estimates and Positive Market Reaction**:
- Equities research analysts at Leerink Partners increased their Q3 2024 EPS estimates for Pfizer from $0.61 to $0.68. This adjustment reflects a more optimistic outlook on Pfizer's earnings potential for the quarter.
- Following the earnings release, Pfizer's stock saw a positive movement, with shares climbing 21 cents to $30.93 in early morning trading. This uptick suggests that investors were pleased with the company's performance and the raised guidance for the year.
3. **Strategic Initiatives and Future Outlook**:
- Pfizer's net income for Q3 2024 was $4.47 billion, which, although impressive, represents a significant decline from the previous year's quarter, where net income was $5.65 billion. This decline was due to a $1.3 billion restructuring charge related to a manufacturing optimization program.
- Despite the challenges, Pfizer remains optimistic about its future performance, with adjusted earnings guidance for the year ranging between $2.45 to $2.65 per share, up from the previous forecast of $2.15 to $2.35. This indicates a potential rebound in earnings, which could be a positive catalyst for investors.

In conclusion, Pfizer's Q3 2024 earnings report was a mixed bag, with strong revenue growth and positive earnings per share exceeding expectations, but also highlighted the impact of restructuring charges. The company's strategic initiatives and optimistic future outlook have likely contributed to the positive market reaction and increased investor confidence.