Drug major Pfizer Inc. raised Wednesday its outlook for fiscal 2021 earnings and revenues following strong second quarter results that exceeded market estimates.
According to the company, the upward revision in full-year outlook, for the second quarter in a row, reflects its updated expectations for contributions to 2021 performance from both BNT162b2, the Pfizer-BioNTech SE COVID-19 vaccine, as well as its business excluding BNT162b2.
The company now anticipates 2021 revenues of around $33.5 Billion for BNT162b2, reflecting 2.1 billion doses expected to be delivered in 2021 under its signed contracts as of mid-July 2021. This is higher than previously expected revenues of approximately $26 billion.
Based on current projections, Pfizer and BioNTech expect to manufacture in total up to 3 billion doses by the end of December 2021. This is subject to continuous process improvements, expansion at current facilities and adding new suppliers and contract manufacturers.
Albert Bourla, Chairman and Chief Executive Officer, said, “Looking forward, we remain highly confident in our ability to achieve at least a 6 percent compound annual growth rate through 2025..”
For the year, the company now expects adjusted earnings per share to be in a range of $3.95 to $4.05, higher than previously expected $3.55 to $3.65.
Revenues for the year are now expected to be in a range of $78 billion to $80 billion, up from previously expected $70.5 billion to $72.5 billion.
On average, analysts polled by Thomson Reuters expect earnings of $3.70 per share on revenues of $72.78 billion. Analysts’ estimates typically exclude special items.
According to the company, the midpoint of the guidance range for revenues represents 89 percent growth from 2020 revenues, and for adjusted earnings per share reflects a 77 percent increase.
Excluding contributions from BNT162b2, adjusted earnings per share is now expected to be $2.55 – $2.65, up from previously expected $2.50 to $2.60, and revenues are now expected to be $45 billion to $47.0 billion, higher than earlier estimated $44.6 billion to $46.6 billion.
The midpoint of the revenue guidance range reflects approximately 7 percent operational growth, while its around 11 percent operational growth for adjusted earnings.
For the second quarter, net income climbed 59 percent to $5.56 billion or $0.98 per share from $3.49 billion or $0.62 per share last year.
Adjusted net income was $6.08 billion or $1.07 per share, compared to $3.47 billion or $0.62 per share a year ago.
The company’s revenue for the quarter rose 92.5 percent to $18.98 billion from $9.86 billion last year. Analysts projected earnings of $0.96 per share on revenues of $18.45 billion.
Operational revenue growth was 86 percent. BNT162b2 contributed $7.8 billion in direct sales and alliance revenues. Excluding BNT162b2, revenues grew 10 percent operationally to $11.1 billion.
Except Inflammation & Immunology segment, all businesses recorded good revenue growth.
In pre-market, Pfizer shares were trading at $42, down 0.24 percent.
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