Pfizer Stock Drops 2.84% Amid Earnings Concerns

On April 9, 2025, Pfizer's stock experienced a 2.84% drop in pre-market trading, reflecting a challenging period for the pharmaceutical giant.

Analysts from UBS have lowered their earnings per share (EPS) forecast for Pfizer's first quarter to $0.67, below the consensus estimate of $0.71. This revision is primarily due to concerns over the underperformance of Pfizer's COVID-19 related products, including the Paxlovid treatment and the Comirnaty vaccine, which are expected to fall short of market expectations in the first quarter.

Pfizer's current market value stands at $125 billion, a significant decline from its peak during the COVID-19 pandemic. The company is grappling with multiple challenges, including a substantial debt burden and a product pipeline that is under scrutiny. The absence of a stock buyback program in 2024 and no plans for one in 2025 further adds to investor concerns, as the company focuses on reducing debt from recent acquisitions.

Investors are eagerly awaiting more data on Pfizer's GLP-1 weight loss drug, danuglipron, which is currently in clinical trials. This oral medication has the potential to compete with existing GLP-1 drugs that are only available in injectable form. Success in this area could provide a much-needed boost to Pfizer's revenue, especially as sales of its COVID-19 related products continue to decline.

Despite these challenges, Pfizer remains committed to maintaining and increasing its dividend, which currently stands at 7.9%, one of the highest in the S&P 500. The company's chief financial officer, David Denton, has reassured investors of their commitment to achieving a deleveraged balance sheet by the end of 2025, which would provide a more balanced capital allocation strategy.