On Aug. 4, Pfizer slightly increased the low end of its full-year revenue projection after reporting second-quarter adjusted earnings that topped Wall Street estimates, led by strong demand for the blood thinner Eliquis. The stock reacted positively in premarket trading, rising 1.8% to $25.5.
Management continues to pursue a strategy that leans on newly launched medicines to compensate for declining COVID-related sales and to reduce dependence on older, established blockbusters. Investors are watching closely to see whether the company's $10 billion acquisition of Metsera will translate into a significant foothold in the rapidly expanding obesity treatment market.
For the full year, Pfizer now anticipates sales between $60.5 billion and $62.5 billion, an upward revision to the lower bound from the prior $59.5 billion to $62.5 billion range. The company reported adjusted earnings of $0.77 per share for the quarter, compared with analysts' estimates of $0.68 per share, based on data compiled by LSEG.
While the quarterly beat and the modestly improved guidance provided some near-term support for the stock, the company faces the backdrop of a share price that remains well below its pandemic-era highs - shares have fallen more than 50% from that peak. Pfizer has signaled expectations of a stronger growth trajectory returning after 2028.
The mix of results and strategic priorities underlines the balancing act for the drugmaker: sustaining revenue momentum from current franchise drugs like Eliquis while integrating acquisitions and newer products to reshape its portfolio over the coming years. How effectively Metsera contributes to that effort, and the pace at which newer medicines offset fading COVID revenue, will be key metrics investors track.
Market reaction: Shares rose 1.8% to $25.5 in premarket trading following the earnings release.
Reported results: Adjusted profit of $0.77 per share versus analyst expectations of $0.68 per share, according to LSEG. Revised full-year sales outlook to $60.5 billion - $62.5 billion from $59.5 billion - $62.5 billion.