Pfizer Stock Tumbles; Here’s Why Its Triple-Digit Sales Growth Disappointed

Pfizer stock skidded Tuesday as the company predicted a record-setting $100 billion in full-year sales, but that forecast lagged an even more bullish Wall Street estimate.

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The company’s guidance includes $32 billion in revenue from Pfizer‘s (PFE) BioNTech (BNTX)-partnered Covid vaccine, dubbed Comirnaty, and another $22 billion from its Covid antiviral pill regimen, Paxlovid. Mizuho Securities analyst Vamil Divan expects estimates to climb as Pfizer signs new contracts for both products. In fact, Pfizer noted the guidance is based on contracts signed as of late January.

“We believe Pfizer remains in a strong position given the success they are experiencing with Comirnaty and Paxlovid, with the key questions being the sustainability of those revenue streams and how the company leverages their ‘Covid cash’ to improve their longer-term outlook,” he said in a report to clients.

But in morning trades on the stock market today, Pfizer stock tumbled 4.9% near 50.60.

Pfizer Stock: Earnings Beat, Sales Miss

Overall, Pfizer’s fourth-quarter measures came in mixed. The company earned $1.08 per share, minus some items, on $23.84 billion in sales. Earnings soared 152% and beat forecasts for 87 cents a share. Sales rocketed 105% but just missed views for $24.16 billion, according to FactSet.

Comirnaty generated $12.5 billion, easily topping expectations for $12.38 billion, Divan said. Paxlovid was more mixed with $76 million in sales beating Divan’s estimate but lagging broader views for $143 million. Paxlovid is an oral regimen using two pills to treat Covid at home.

“The longer-term revenues that Pfizer may be able to generate from Comirnaty and Paxlovid remain unknown and will be determined in part by how the pandemic evolves as well as potential competitive dynamics within each market,” he said. Divan has a neutral rating and price target of 56 on Pfizer stock.

Still, Pfizer’s guidance dragged on other vaccine stocks. BioNTech stock fell 6% near 162.40. Shares of Moderna (MRNA) toppled 5.4% near 151.70.

Other Pfizer Products Mixed

Excluding Pfizer’s Covid products, total sales declined 2%.

Divan noted revenue from blood thinner Eliquis topped forecasts at $1.5 billion, up 19%. Xeljanz, a treatment for inflammatory conditions like arthritis, generated $721 million, topping expectations and climbing 4%. Sales of heart disease treatment Vyndamax also popped 31% to $561 million and beat.

But sales of Pfizer’s biggest cancer drug, Ibrance, fell 3% to $1.39 billion. And the timing of government orders for pneumonia vaccine, Prevnar, resulted in a miss. Prevnar sales crashed 26% to $1.3 billion.

For the year, Pfizer predicted adjusted profit of $6.35-$6.55 per share, well below projections for $6.71 per share. The company also called for $98 billion to $102 billion in sales. Pfizer stock analysts had predicted $103.18 billion in sales.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

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