Pfizer Released Upbeat Q1 2022 Report Despite Vaccination Slowdow

The poster child bluechip biotech Pfizer (PFE) recently released its Q1 earnings results. Pfizer is one of the largest biotech companies in the world. Founded as far back as 1849 by Charles Pfizer and Charles F. Earhart in Brooklyn, it is now having 79,000 employees while having developed into an immense global pharma manufacturer and medical research centers around the world.

Let's have a look at the released results: Q1 2022 revenue of $25.7 billion posted 77% growth annually, reflecting 82% operational growth. Furthermore, Q1 2022 diluted EPS came in at $1.37, while adjusted diluted EPS rose to $1.62. Consequently, 1Q 2022 net income stood at $7.864 billion (+61% YoY).

During Q1 2022, Pfizer paid out $2.2 billion in cash dividends, or $0.40 per common share and spent $2 billion on its share buybacks.

Key growth drivers for the quarter included Comirnaty, Paxlovid, Eliquis, Vyndaqel/Vyndamax globally, while Prevnar family of vaccines and the oncology biosimilars portfolio in the U.S. further boosted the company’s performance. Overall, in Q1 alone PFE reached around 468 million patients around the world, which represent a 140% increase YoY.

Speaking on CNBC's "The Exchange," Pfizer’s CEO Albert Bourla said that the company is developing an Omicron-specific vaccine and can produce a multivalent shot against multiple variants.

Also, the company reiterated its full-year revenue guidance of $98-102 billion. However, FY 2022 financial guidance for adjusted diluted EPS was downward revised to a range of $6.25 to $6.45 vs. $7.13 consensus “to reflect an $0.11 negative impact for an accounting policy change to include all acquired In-process R&D expenses. In our view, the major role here must be attributed to the negative impact of the U.S. dollar strengthening on international sales.

Conclusion. Pfizer reported strong financial results for 1Q 2022 and updated its financial outlook for 2022. In the quarter, the company reported an 82% increase in operating income. For the first time since 2019, the company bought back its shares from the market. One of the main goals of the company remains the maximizing value for shareholders and patients, which reserves its permanent place in retail investors’ portfolios.