Pfizer Stock Slips. Under the Surface, Earnings Weren’t Great.

Core Viewpoint - Pfizer's stock has declined nearly 60% since the end of 2021, despite third-quarter financial results exceeding expectations, primarily due to underperformance in key growth products [2][5][7]. Financial Performance - Adjusted diluted earnings were $0.87 per share, surpassing the consensus estimate of $0.63 per share [3]. - Revenue reached $16.7 billion, slightly above the expected $16.5 billion [3]. - The revenue increase was largely driven by older products, while cost reductions and lower tax liabilities contributed positively to the bottom line [3][7]. Product Performance - Sales of Eliquis, a blood thinner, amounted to $2 billion, up 22% year-over-year, exceeding the $1.8 billion consensus estimate [9]. - Sales of Paxlovid, the Covid-19 antiviral, were $1.2 billion, down 55% from the previous year, while Comirnaty, the Covid-19 vaccine, also saw a 20% decline in sales [11]. - Sales of Padcev and Adcetris, cancer treatments acquired from Seagen, were $464 million and $215 million respectively, both falling short of Wall Street expectations [12]. Strategic Outlook - Pfizer maintained its full-year revenue forecast but narrowed its earnings estimate to between $3 and $3.15 per share, up from a previous range of $2.90 to $3.10 [13]. - The company is facing challenges as key products approach patent expirations, and the market for Covid-19 products has contracted [5][7]. - Ongoing legal issues regarding the acquisition of Mestera have added uncertainty to Pfizer's strategic positioning in the obesity market [14].