Pfizer Stock Jumps On Mixed, But 'Marginally Encouraging,' 2025 Outlook

Pfizer's stock surged on Wednesday following its first-quarter earnings report, driven by a mix of positive and negative factors that painted a 'arginally encouraging' outlook for 2025. The pharmaceutical giant's sales topped expectations, driven by strong performance in key drugs like Paxlovid and Vyndaqel. However, Comirnaty, the Covid vaccine developed with BioNTech, saw sales dive 88% to $354 million. Despite the mixed performance, Pfizer's earnings outlook for 2025 was 'arguably encouraging,' with adjusted earnings guidance of $2.15 to $2.35 per share, slightly above forecasts.

Pfizer's stock jumped 6.1% to close at $27.18, retaking its 52-week high, following the release of its first-quarter earnings report. The pharma giant's adjusted earnings of 82 cents per share, while down 33%, surpassed analysts' expectations of 51 cents. Sales of $14.88 billion also topped projections for $13.87 billion. Pfizer's outlook for the year was mixed, with adjusted earnings guidance of $2.15 to $2.35 per share, just above forecasts for $2.21, and sales guidance kept at $58.5 billion to $61.5 billion, vs. expectations for $59.94 billion.



Pfizer's cost-cutting measures and gross margin improvements played a significant role in shaping this outlook. Pfizer reported a nearly 80% gross margin in Q1, much higher than the 70% projected for 2024, indicating enhanced operational efficiency. This improvement was boosted by a favorable sales mix, adjustments to Paxlovid, and cost efficiencies. By the end of 2024, Pfizer expects to save at least $4 billion in net costs, contributing to its revised earnings guidance of $2.15 to $2.35 per share, with the midpoint just above forecasts.



Pfizer's acquisition of Biohaven Pharmaceuticals in 2022 brought migraine treatment Nurtec into its portfolio. However, Nurtec's sales missed expectations in Q1 2024, edging up 7% year over year to $178 million. This fell short of the $220 million forecast, indicating a potential drag on Pfizer's earnings outlook. Despite this, Pfizer maintained its sales guidance of $58.5 billion to $61.5 billion for 2024, suggesting that Nurtec's underperformance may not significantly impact the overall earnings outlook.

In conclusion, Pfizer's mixed but 'arguably encouraging' 2025 outlook, driven by strong performance in key drugs and cost-cutting measures, contributed to a surge in its stock price. While the market reaction was muted due to the company's cautious outlook, investors remain focused on long-term growth prospects. As Pfizer continues to navigate the post-pandemic landscape, its ability to adapt and innovate will be crucial in maintaining its competitive edge.