Stocks Dipping Amid the Christmas Rally: Pfizer
Shares of this multinational pharmaceutical and biotechnology corporation were very popular among investing crowds during the pandemic, when it developed the first COVID-19 vaccine. Its revenue exceeded $100 billion in 2022, yet later the number slipped to $44.2 billion only for the first nine months of 2023, when the therapy measures dominated over fresh prophylactic spending.
Therefore, the stock entered into a strong adjustment period, from nearly $55 per share in December 2022 to below $28.5 one year later. And it fell by another 7.5% to $26.5 shortly before the trading session on December 13, following the company's own outlook forecasts for 2024. Dr. Albert Bourla, Pfizer CEO said that his company's annual revenue would be supposedly at $60 billion, up or down $1.5 billion, which is well below the Wall Street pool's consensus of $63.1 billion, including approximately $8 billion from COVID-19 products like Comirnaty and Paxlovid and $3.1 billion from Seagen cancer care medicine, as Pfizer is completing the acquisition of this business. Nevertheless, diluted equity per share (EPS) could be within a range of $2.05 to $2.25, big expected failure vs the consensus value of $3.16.
“Pfizer’s product portfolio remains strong. In 2024, ... our remaining portfolio [except COVID-19 related drugs] of combined Pfizer and Seagen products is expected to achieve YoY operational revenue growth in the range of 8% to 10%... In addition, we expect our cost realignment program to deliver savings of at least $4.0 billion... which puts us on a path to potentially regain our pre-pandemic operating margins," Dr. Albert Bourla said struggling to sound more optimistic. Yet, further possible decline in Pfizer stock is probably on the table, so that it is just going to skip the Christmas rally mood in the best case.
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