Pfizer Inc. (NYSE:PFE) Predicts 2025 Profits in Line with Wall Street Projections

Pfizer Inc. announced on Tuesday that it anticipates its profits for 2025 to align closely with current Wall Street projections. This announcement comes as the pharmaceutical giant addresses criticism from activist hedge fund Starboard Value regarding its recovery strategy.

In response to the forecast, Pfizer's stock saw an increase of nearly 3% in premarket trading. The company has set its adjusted earnings target between $2.80 and $3 per share, which is near the $2.88 average estimate projected by analysts.

The drugmaker is focused on reducing costs and minimizing debt by divesting non-essential businesses as part of a broader strategy to reshape the company following a significant drop in sales of COVID-19 related products.

Shares have declined by nearly 12% since the beginning of the year, currently valued at about half of their peak during the pandemic. This revenue decline and the looming expiration of patents for several leading drugs have made the company susceptible to critiques from investors. Starboard Value expressed concerns in October that Pfizer's management had overspent on large acquisitions without yielding profitable new drugs or results from in-house R&D efforts.

Pfizer projected its revenue for 2025 to be between $61 billion and $64 billion, close to the $63.26 billion predicted by analysts. A conference call with analysts is scheduled later today to discuss these forecasts.

Additionally, Pfizer reaffirmed its guidance for full year 2024, expecting a 10% to 18% operational growth in adjusted diluted earnings per share (EPS) for 2025, based on the midpoint of 2024 guidance after adjustments for non-recurring items.

The company has already achieved net cost savings of $4.0 billion through 2024 and anticipates an extra $500 million in savings in 2025 from its ongoing cost realignment program. The initial phase of its manufacturing optimization is on track to contribute to these savings by late 2025, improving gross margin performance.

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