Pfizer announced its 2025 sales and earnings forecast on December 17th, aligning closely with Wall Street's expectations. The company projected adjusted earnings per share between $2.80 and $3, matching the average analyst estimate of $2.88. This forecast comes as Pfizer aims to counter criticism from activist hedge fund Starboard Value, which has challenged the company's strategic direction. Starboard has previously criticized Pfizer for overspending on acquisitions without yielding profitable new drugs, as well as for its handling of the post-Covid-19 sales decline. In response, Pfizer has been focusing on cost-cutting measures and divesting non-core businesses to streamline operations.
The company also projected 2025 revenue to be between $61 billion and $64 billion, slightly below the analyst consensus of $63.26 billion. This guidance is part of Pfizer's broader strategy to stabilize its financial performance amid challenges such as patent expirations on key drugs and a significant drop in Covid-19 product sales. The market's positive reaction to the forecast suggests investor confidence in Pfizer's ability to navigate these hurdles and improve its financial health.
Pfizer's stock rose 3.01% to $26.01 as of 7:40 am on December 17th, up from its previous close of $25.25.