Key Points
Diluted earnings and revenue smashed through Wall Street consensus estimates.
Management raised its full-year earnings guidance for 2025.
Pfizer is starting to execute on its turnaround plan and drug pipeline.
Shares of the large pharmaceutical company Pfizer (NYSE: PFE) closed up over 5% today after a strong earnings report that included raising its full-year profit outlook for 2025.
Starting to execute
In the second quarter, Pfizer reported adjusted diluted earnings per share of $0.78 on revenue of nearly $14.7 billion. Both numbers came in well above expectations, with diluted EPS $0.20 higher than consensus estimates, and revenue over $1 billion higher, according to FactSet estimates.
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Additionally, Pfizer reaffirmed its 2025 revenue guidance of $61 billion to $64 billion and raised its diluted EPS guidance range by $0.10 to $3.00 at the midpoint of its guidance.
Pfizer's stock is down close to 17% over the past year and 32% over the past five years. The company did extremely well during the COVID-19 pandemic, as one of the key vaccine makers. Since then, Pfizer has struggled to excite investors about the company's future.
"We have a lot of potential products that are in our pipeline that are going to read out," Pfizer CEO Albert Bourla told Barron's. "Putting those data in the hands of investors will give them comfort that we will have a meaningful growth trajectory into 2030 and beyond."
Challenges remain, but company is better positioned operationally
Pfizer, along with other large drugmakers, could potentially face a challenging environment. President Donald Trump wants to see lower drug costs for Americans, and he hasn't been afraid to make his intentions known. Trump recently threatened pharma tariffs that he said could reach 250%.
But operationally, Pfizer seems to be getting its act together. The stock only trades around 8 times forward earnings and has a dividend yield close to 7%, presenting an attractive entry point for long-term investors.
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Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer. The Motley Fool has a disclosure policy.