Pfizer PFE posted a narrower-than-expected third quarter loss Tuesday, while holding its recently-lowered profit forecasts in place amid the ongoing slump in Covid vaccine and treatment sales.
Pfizer said its adjusted loss for the three months ended in September was pegged at 17 cents per share, down from a profit of $1.78 over the same period last year but well inside the Wall Street consensus forecast of a loss of 34 cents per share.
Pfizer slashed its full-year sales and profits forecasts earlier this month amid a slump in demand for Covid treatments. The group told investors earlier this month that it would write-off around $4.6 billion in inventories of Paxlovid, its oral Covid treatment, while taking a further $5.5 billion non-cash charge against its third quarter earnings.
Group revenues, Pfizer said, fell 41.5% to $13.232 billion, missing analysts' estimates of a $13.34 billion tally.
Looking into the final months of the year, Pfizer said full-year group revenues would likely come in between $58 billion and $61 billion, down from its early August forecast of between $67 billion and $70 billion, amid slumping sales of its both Paxloid and its Comirnaty Covid vaccine.
Pfizer also said adjusted earnings for the full-year will likely be within a range of $1.45 to $1.65 per share, well south of its August forecast of between $3.25 to $3.45 per share.
“With a significant uncertainty removed by our recently announced amended Paxlovid supply agreement with the U.S. government, our expectation of additional clarification on global vaccination and treatment rates by the end of the year, and the breakthroughs continuing to emerge from our pipeline, we look forward to concluding 2023 with positive momentum that showcases Pfizer’s long-term growth potential,” said CEO Albert Bourla
Pfizer shares were marked 0.1% lower in late-day Tuesday trading immediately following the earnings release to change hands at $30.07 each, extending the stock's six-month decline to around 23%.
Investors will likely now focus on Pfizer's ability to pass on price increases for its Covid treatments, now that they've moved from government-controlled distribution.
A recent trial suggesting a combination flu/Covid vaccine, which it's developing alongside its German partner BioNTech BNTX, could also support domestic U.S. vaccine rates, currently forecast at around 17%, and the group's overall top and bottom lines.
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