Pfizer releases Q4 and FY 2021 report

Pfizer Inc. (PFE) published its Q4 2021 and annual financial results. After the release, the company’s shares dropped by 3.59% during the extended hours.

Q4 2021 revenue of $23.8 billion reflected a 106% operations growth, but missed expectations by $360 million. 2021 FU revenue of $81.3 billion demonstrated a 92% growth in operations. Q4 2021 diluted EPS came in at $0.59, while adjusted diluted EPS rose to $1.08. 2021 FY diluted EPS accounted for $3.85, while adjusted diluted EPS appeared at 4.42. Q4 2021 net income came in at $3.393 billion, while FY 2021 net income constituted $21.979 billion.

Its blockbuster Covid-19 vaccine generated $12.5 billion in direct sales and consolidated revenues. Meanwhile, the company’s recently announced Covid-19 pill Paxlovid already brought in $76 million in sales in the U.S. after the FDA authorization. Sales of blood thinner, Eliquis grew approximately 19% globally while JAK inhibitor Xeljanz led to 4% growth in operational sales. However, Prevnar and its offsprings (Prevnar/Prevenar 13 & 20) recorded a 25% YoY decline globally driven by 27% decline in the U.S. amid Covid-19 impact on vaccinations.

The biotech mogul raised its 2022 guidance on revenue to a range of $98.0 billion to $102.0 billion and on adjusted diluted earnings per share to a range of $6.35 to $6.55, reflecting growth of 23% and 46% compared to the same period last year, respectively. During the investors call, the company’s CEO Albert Bourla said “Our full-year 2022 financial guidance includes for the first time ever a forecasted revenue midpoint that is triple digit, $100 billion and an adjusted diluted EPS midpoint of $6.45”.

In 2021 Pfizer paid out $8.7 billion in cash dividends, or $1.56 per common share, representing a 3% increase in dividends per share over the full year 2020. There were no share buybacks in 2021. As of February 8, 2022, Pfizer's share buyback’s residual balance is $5.3 billion. Current guidelines do not include any share repurchases in 2022.

Conclusion. The company has released strong financial results for both the 4th quarter and all of 2021, but issued rather muted guidance for 2022. In recent months, Pfizer has invested heavily in numerous business development deals to advance the company's strategies, always with an eye to supporting growth in the second half of this decade and beyond. Investors are apparently feeling the heat to make a pause in order to assess Pfizer’s high stock valuations and decide whether they are justified given further slower vaccination pace implications.