Pfizer (PFE.US) beats Q3 expectations and raises full-year revenue outlook, but faces activist investor skepticism
1min read Pfizer (PFE.US) reported its third-quarter results, which not only exceeded market expectations but also helped the company raise its full-year revenue and EPS expectations for 2024. The company reported EPS of $1.06 under non-GAAP, far exceeding the expected $0.45, and revenue grew 32.1% YoY to $17.7 billion. Based on this strong performance, Pfizer raised its full-year revenue expectation from $59.5 billion to $62.5 billion to $61 billion to $64 billion and raised its adjusted diluted EPS expectation from $2.45 to $2.65 to $2.75 to $2.95.
It is understood that since the outbreak of the epidemic, Pfizer has launched new drugs through a series of transactions to cope with the decline in the sales of COVID-19 vaccines. Despite falling by more than half since its peak in December 2021, Starboard Value LP invested $1 billion in Pfizer and pushed the company to change.
Under the leadership of CEO Albert Bourla, Pfizer has made a series of deals worth $70 billion, including the $43 billion acquisition of Seagen Inc., and announced a new plan to cut $1.5 billion in costs by the end of 2027, further extending the previous plan to cut $4 billion in expenses by the end of the year.
Notably, the sales of Paxlovid, a COVID-19 treatment drug, reached $2.7 billion in the quarter, and the sales of COVID-19 vaccines also exceeded expectations, partly due to the early approval of new variant vaccines.
However, Jeff Smith, CEO of Starboard Value, criticized Pfizer's mistakes, including high transaction expenses and poor internal R&D returns, believing that they have caused the company to lose at least $20 billion in value, and implied the possibility of replacing the CEO.
Moreover, Pfizer recalled its sickle cell anemia drug Oxbryta in September due to safety issues and suffered setbacks in developing weight loss drugs, but the company did not give up.
Starboard once formed a short-lived alliance with former Pfizer executives but later deteriorated, with Starboard accusing Pfizer of threatening former executives to support the current management.
As of the time of writing, Pfizer's premarket rose over 1% to $29.21.
