Pfizer reaffirms FY24 EPS and revenue guidance; sees FY25 EPS/revs in line (25.25)
- Co reaffirms guidance for FY24 (Dec), sees EPS of $2.75-2.95 vs. $2.91 FactSet Consensus; sees FY24 (Dec) revs of $61-64 bln vs. $62.89 bln FactSet Consensus.
- Co issues in-line guidance for FY25 (Dec), sees EPS of $2.80-3.00, excluding non-recurring items, vs. $2.86 FactSet Consensus; sees FY25 (Dec) revs of $61-64 bln vs. $63.22 bln FactSet Consensus.
- 2025 Revenue guidance takes into consideration the anticipated net unfavorable impact to revenue of approximately $1 billion, year-over-year, related to the Inflation Reduction Act (IRA) Part D Redesign changes that take effect in 2025. The IRA makes significant changes to the Medicare Part D benefit design, which will impact Pfizer revenue in 2025, including: an expected favorable impact from the $2,000 annual out-of-pocket cap and new Prescription Payment Plan, more than offset by an expected unfavorable impact from the sunsetting of the Coverage Gap Discount Program and the addition of new manufacturer discounts in the initial and catastrophic coverage phases.
- Achieved goal of $4.0 billion in net cost savings through 2024 and anticipate an additional $500 million in savings in 2025 from ongoing cost realignment program.
- First phase of manufacturing optimization program on track to deliver initial net cost savings in the latter part of 2025, toward goal of improving gross margin performance.
- "We also expect to continue improving our operating margins with focused financial discipline. We've been successful in delivering on our goal of $4 billion in net operating expense savings through 2024 from our cost realignment program, with an additional $500 million still expected to come in 2025. Additionally, in support of our ongoing efforts to improve gross margin performance, we will work to make additional progress with our Manufacturing Optimization Program in the coming year.