CA - Pfizer: Solid Earnings But We're Not Out Of The Woods Yet

2024-05-07 04:32:13 ET

Summary

• Pfizer released a solid set of quarterly earnings last week, with $14.9bn topline revenues and adjusted EPS of $0.82.
• The Pharma giant earned >$100bn from its COVID vaccine and antiviral in 2021, 2022 and 2023, yet still maintains >$60bn of long-term debt.
• Pfizer has spent heavily on M&A and expects to generate >$45bn in new revenues from its current pipeline and product portfolio.
• The planned growth will help the company offset falling revenues from patent-expired products such as anticoagulant Eliquis.
• Management faces some tough challenges and may face questions around how it deployed its COVID cash bonus - these will likely keep the share price weighed down, with resolutions 2-3 years away potentially.

Investment Overview - Where Pfizer Is Concerned, Metrics Don't Tell The Whole Story

In July 2022, I shared a note with Seeking Alpha readers titled "Eli Lilly's (LLY) Market Cap Is Higher Than Pfizer's ( PFE ) - This Anomaly Won't Last"....

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