On February 4, 2025, Pfizer Inc (PFE, Financial) released its 8-K filing detailing its financial results for the fourth quarter and full year of 2024. Pfizer, one of the world's largest pharmaceutical firms, reported significant growth in its non-COVID product portfolio, achieving a 12% operational revenue increase for the full year, excluding contributions from Paxlovid and Comirnaty. The company's diverse portfolio includes top-selling products like the pneumococcal vaccine Prevnar 13, cancer drug Ibrance, and cardiovascular treatment Eliquis, with international sales contributing nearly 50% of total revenue.
Financial Performance and Challenges
For the fourth quarter of 2024, Pfizer reported revenues of $17.8 billion, reflecting a 21% year-over-year operational growth. This figure surpassed the analyst estimate of $17,397.22 million. The reported diluted earnings per share (EPS) for the quarter was $0.07, while the adjusted EPS was $0.63. The adjusted EPS exceeded the estimated EPS of $0.16. The full-year 2024 revenues reached $63.6 billion, marking a 7% increase from the previous year, with a reported diluted EPS of $1.41 and an adjusted EPS of $3.11.
Key Financial Achievements
Pfizer's financial achievements in 2024 were bolstered by its ongoing cost realignment program, which is on track to deliver approximately $4.5 billion in net cost savings by the end of 2025. The company also reaffirmed its 2025 financial guidance, projecting revenues between $61.0 to $64.0 billion and adjusted diluted EPS ranging from $2.80 to $3.00. These achievements are crucial for maintaining competitive advantage in the pharmaceutical industry, where cost efficiency and strategic growth are paramount.
Income Statement and Balance Sheet Highlights
The income statement revealed a significant increase in adjusted income, which rose by 69% to $17,716 million for the full year. The balance sheet showed a decrease in cost of sales by 28% year-over-year, attributed to favorable changes in sales mix and reduced sales of Comirnaty. The cash flow statement highlighted Pfizer's capital allocation strategy, with $10.8 billion reinvested in research and development and $9.5 billion returned to shareholders through dividends.
Executive Commentary
Dr. Albert Bourla, Chairman and CEO, stated: “2024 was a strong year of execution and performance for Pfizer in which we met or exceeded our strategic and financial commitments, strengthened our company and, most importantly, reached millions of patients with our medicines and vaccines.”
David Denton, CFO and EVP, commented: “We are pleased with the 12% operational revenue growth of Pfizer’s non-COVID products in full-year 2024, demonstrating our continued focus on commercial execution.”
Analysis and Outlook
Pfizer's robust performance in 2024, driven by its non-COVID product portfolio and strategic cost management, positions the company well for future growth. The reaffirmation of its 2025 guidance underscores confidence in its ability to navigate industry challenges and capitalize on emerging opportunities. However, the company must continue to address challenges such as declining Comirnaty revenues and increased competition in certain markets to sustain its growth trajectory.
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Explore the complete 8-K earnings release (here) from Pfizer Inc for further details.
