Pfizer Inc.'s stock faces decline after revealing lower than expected revenue and EPS projections for 2024. Factors influencing the guidance include the acquisition of Seagen and a cost realignment program.
Pfizer Inc.'s stock (PFE, -0.21%) faced a significant decline of 7% premarket on Wednesday after the company revealed its guidance for 2024, which fell behind consensus expectations. The drug company, which is scheduled to host an investor day later in the day, anticipates the completion of its acquisition of oncology drug developer Seagen on Thursday. This acquisition is factored into Pfizer's guidance.
Pfizer's projected revenue for 2024 is estimated to fall within the range of $58.5 billion to $61.5 billion. However, this projection is lower than the $62.6 billion consensus forecast by FactSet. Similarly, the company expects earnings per share (EPS) for 2024 to range from $2.05 to $2.25, while FactSet's projection stands at $3.17.
The revenue guidance includes an estimated $8 billion generated from Pfizer's COVID-19 vaccine, Comirnaty, and its antiviral medication, Paxlovid. Additionally, Pfizer anticipates approximately $3.1 billion in revenue from Seagen and around $1 billion resulting from the reclassification of Pfizer's royalty income from other (income)/deductions into the revenue line.
Pfizer aims to achieve cost savings of at least $4.0 billion by the end of 2024 through its cost realignment program. Chief Executive Albert Bourla expressed optimism in a statement, stating that this program places the company on track to potentially regain its pre-pandemic operating margins.
Year-to-date, Pfizer's stock has experienced a decline of 44%. In contrast, the S&P 500 index (SPX, +0.46%) has witnessed a 21% increase during the same period.
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