Pfizer (NYSE:PFE), the pharmaceutical and biotechnology giant, slid in pre-market trading after its FY24 guidance left investors disappointed. The company now expects FY24 revenues to be in the range of $58.5 billion to $61.5 billion. This includes an expected contribution of $3.1 billion from its acquisition of Seagen after receiving all the regulatory approvals.
However, the outlook was below analysts’ forecast of $62.66 billion. The company expects operational revenues to grow between 8% and 10% year-over-year when including contributions from Seagen revenues and excluding revenues from Comirnaty and Paxlovid.
It also anticipates adjusted diluted earnings in the range of $2.05 to $2.25 per share, including the impact of the Seagen acquisition, but the consensus was for adjusted earnings of $3.16 a share.
Pfizer CEO Albert Bourla commented, “We expect our cost realignment program to deliver savings of at least $4 billion by the end of 2024, which puts us on a path to potentially regain our prepandemic operating margins.”
Is Pfizer a Buy, Hold, or Sell?
Overall, analysts are cautiously optimistic about PFE stock with a Moderate Buy consensus rating based on five Buys and eight Holds. Over the past year, PFE stock has slid by more than 40%, and the average PFE price target of $39.73 implies an upside potential of 39% at current levels.
