Underwhelming Revenue Projections
Pfizer has provided its revenue outlook for 2024, expecting a range between $58.5 billion and $61.5 billion. This estimate includes a predicted contribution of approximately $3.1 billion from the company’s pending acquisition of Seagen. Notably, these figures display minimal year-over-year growth for Pfizer, as the projected revenue for 2023 already falls within the $58 billion to $61 billion range.
Earnings Per Share (EPS) Expectations
Pfizer also forecasts adjusted diluted earnings per share (EPS) to fall between $2.05 and $2.25 in 2024, considering the anticipated impact of the Seagen acquisition. This contrasts with an expected adjusted diluted EPS of $1.45 to $1.65 throughout the entirety of 2023.
The primary factor contributing to Pfizer’s weakened projections lies within the sales figures for its two products, Comirnaty and Paxlovid. In 2024, the combined sales for these products are expected to total just $8 billion, a notable decline from the projected $12.5 billion for this year.
When isolating the impact of COVID-19 products, Pfizer’s operational revenue growth for 2024 is estimated to be between 8% and 10%. However, the substantial decrease in demand for Comirnaty and Paxlovid cannot be overlooked.
The possibility of analyst downgrades looms over Pfizer, given its disappointing 2024 guidance. Nevertheless, some experts within Wall Street argue that the company’s valuation presents a compelling opportunity.
Currently yielding close to 6.3%, Pfizer stock may be of interest to income investors. Furthermore, as Pfizer’s COVID-19 product comparisons become less challenging, a return to solid growth is expected.
For those with a long-term investment perspective and an appetite for attractive dividends, seizing the opportunity to buy Pfizer shares after the sell-off could prove to be a prudent move.