Pfizer (PFE, Financial) reported fourth-quarter profits and revenues that surpassed expectations, primarily driven by higher-than-anticipated sales of its COVID-19 products and effective cost-cutting measures. The company's net income for the quarter was $410 million, or $0.07 per share, compared to a net loss of $3.37 billion, or $0.60 per share, in the same period last year. Excluding specific items, earnings per share were $0.63, beating analysts' estimates of $0.46. Revenue rose 22% year-over-year to $17.76 billion, exceeding the forecasted $17.36 billion.
Following the earnings release, Pfizer's stock rose nearly 2% in pre-market trading. This performance marked a strong conclusion to a pivotal year for Pfizer as it recovers from the rapid decline in COVID-related business and stock price over the past two years. The company aims to save $500 million from its cost-cutting initiatives this year and reaffirmed its 2025 sales forecast of $61 billion to $64 billion. It anticipates its COVID products' performance in 2025 to mirror that of 2024.
Pfizer expects a $1 billion reduction in sales due to adjustments in the Medicare program under the Inflation Reduction Act. Excluding one-time items, the company projects 2025 earnings per share between $2.80 and $3.00 and plans to cut approximately $6 billion in expenses by 2027. Wall Street is likely to focus on Pfizer's long-term financial health and drug development pipeline, including its experimental weight-loss drug danuglipron.
