Pfizer has projected higher earnings for 2025 along with revenue that aligns closely with this year's expected results, signaling the pharmaceutical giant's commitment to 'disciplined execution' and ongoing cost reductions. The anticipated revenue for the upcoming year is estimated to fall between $61 billion to $64 billion, consistent with Pfizer's October 2024 guidance that had been adjusted upwards by $1.5 billion at the midpoint. The current FactSet consensus indicates an expectation of $63.22 billion in sales for 2025.
Pfizer has also reaffirmed its 2024 outlook as of Tuesday. The company anticipates adjusted earnings in the range of $2.80 to $3 per share, compared to analysts' expectations of $2.86. For the current year, Pfizer has confirmed a guidance for adjusted earnings per share (EPS) between $2.75 and $2.95, which is slightly lower than the market's expectation of $2.91. Chief Executive Albert Bourla stated, "Our team will build on a year of disciplined execution in 2024.
We also expect to continue improving our operating margins with focused financial discipline." Pfizer's optimistic guidance follows third-quarter results that exceeded analysts' expectations, fueled by revenue generated from its Paxlovid treatment for COVID-19. At that time, the firm noted it is well on track to achieve net cost savings of at least $5.5 billion, which includes $4 billion in savings for this year through a 'cost realignment program.' Despite the company's shares rising nearly 3% before the market opened, they have seen a decline of more than 12% throughout the year.
In a recent earnings call on October 29, Bourla defended the company’s strategic approach amid criticisms from Starboard Value, which highlighted concerns over Pfizer's stock performance and its billion-dollar loss in market value. The activist investor raised questions about Pfizer's drug pipeline and suggested that the company may have overpaid for certain acquisitions. Bourla countered, asserting that Pfizer's product portfolio remains robust.
"With our clear strategic roadmap, a strong pipeline of potential innovative medicines and vaccines, and a talented team laser-focused on execution, we are confident in our trajectory to deliver significant shareholder value." In a shift, Pfizer has slightly lowered its expectations for 2025 regarding research and development expenses, adjusting the forecast to a range of $10.7 billion to $11.7 billion, down from the previous year's guidance of $11 billion to $12 billion.
Additionally, selling, informational, and administrative expenses are projected to be between $13.3 billion and $14.3 billion, down from the earlier estimate of $13.8 billion to $14.8 billion..