Pfizer Q1 Earnings Likely Declined 41%

By
Kevin George
Kevin George
Full Bio
Kevin George is a freelance crypto writer and editor for Investopedia. He holds a master's degree in finance and has extensive knowledge and experience in the area of trading, markets, and economics.
Learn about our editorial policies
Published April 28, 2023
The Pfizer company logo is displayed as traders work on the floor of the New York Stock Exchange during morning trading on April 10, 2023 in New York City.

Michael M. Santiago / Getty Images

Pfizer (PFE) is expected to post a 41% year-over-year decline in earnings as revenue likely decreased on lower demand for its vaccines and COVID-19-related products.

Key Takeaways

  • Pfizer expected to report diluted EPS declined about 41% to 80 cents from $1.37.
  • A continued decline in COVID-19 vaccines and related products caused a 34% revenue decline.
  • The company's acquisition of Seagen will be key in 2023, adding to pipeline and revenue

The drugmaker is expected to report diluted earnings per share of 80 cents versus $1.37 in the prior year-quarter, according to estimates compiled by Visible Alpha. The company will likely say its net income came in at $4.6 billion, compared with last year’s $7.8 billion, with total revenues down 34% over the same period to $16.44 billion. Pfizer will report its first quarter performance on May 2, 2023.

   Q1 FY2023 (Projection) Q1 FY2022  Q1 FY2021
 Total Revenue ($M)  16,448  25,661  14,516
 Earnings Per Share ($)  0.80 1.37  0.86
Vaccine & Covid-19 Revenue  6,836 14,941  4,894

The latest earnings will be Pfizer’s first since announcing the $43 billion acquisition of Seagen, a leading oncology company. Seagen is expected to generate approximately $2.2 billion of revenue in 2023, and Pfizer believes it can contribute over $10 billion in revenue by 2030. Pfizer also held an investor day in December, highlighting its near-term pipeline which it hopes will contribute up to $20 billion in revenue in 2030. One of those is for the respiratory RSV disease, which the FDA will vote on in May after rival drugmaker GSK had its own treatment approved last month.

Pfizer shares were down more than 21% over last year, heavily underperforming the broader S&P500 Healthcare Sector index, which was up 0.31% for the same period.

Pfizer one year chart

YCharts

The Key Metric

Analysts will be watching closely for the company’s Vaccine & COVID-19 products revenue which is expected to post a sharp decline of 54% year-over-year, from $14.94 billion to $6.84 billion. However, the company said that revenue from COVID-19 products are expected to grow in 2024 after governments had large supplies on hand ahead of 2023.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. Visible Alpha. "Financial Data".

  2. Pfizer. "First Quarter Earnings Release".

  3. Pfizer. "Pfizer to Acquire Seagen".

  4. Pfizer. "Pfizer Invites Investors to R&D Day".

  5. S&P500. "Healthcare Sector".

  6. Pfizer. "Pfizer Reports Record Full-Year 2022 Results And Provides Full-Year 2023 Financial Guidance."

Take the Next Step to Invest
×
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.
Service
Name
Description