U.S. pharmaceutical company Pfizer (PFE) has posted better-than-expected second-quarter financial results and raised its forward guidance.
The New York City-based company reported earnings per share (EPS) of $0.60 U.S., which was much better than the $0.46 U.S. forecast on Wall Street.
Revenue of $13.28 billion U.S. also surpassed that $12.96 billion U.S. expected among analysts.
Sales were up 2% from the same period a year ago. It was the first time that sales had increased since the end of 2022, when the company’s Covid-19 revenue peaked.
The strong Q2 results were attributed to cost-cutting measures, improved sales of the Covid-19 antiviral pill called “Paxlovid,” and strong non-Covid medication sales.
The results represent a turnaround for Pfizer, which has struggled in recent years with a decline in demand for its Covid-19 products.
As sales of its Covid-19 products have fallen, Pfizer has undertaken a cost-cutting drive that aims to deliver at least $4 billion U.S. in savings by the end of this year.
The company is also focusing on cancer treatments after its $43 billion U.S. acquisition of pharmaceutical concern Seagen in 2023.
Looking ahead, Pfizer now expects earnings of $2.45 U.S. to $2.65 U.S. per share for all of this year, up from its previous guidance of $2.15 U.S. to $2.35 U.S. a share.
Pfizer also increased its revenue outlook to a range of $59.50 billion U.S. to $62.50 billion U.S. That’s up from a previous revenue forecast of $58.50 billion U.S. to $61.50 billion U.S.
The company said the raised guidance reflects its strong performance in the first half of the year and its confidence in the strength of its business.
Prior to today (July 30), Pfizer’s stock had declined 15% in the last 12 months to trade at $30.72 U.S. per share.
