Pfizer (PFE) Q1 2021 earnings summary

Executive summary

• Q1 revenue rose 42% operationally, driven by COVID-19 vaccine sales and growth across key brands; revenue excluding the vaccine grew 8% operationally before a ~1.5-point favorable selling-day and comparison impact.

• COVID-19 vaccine revenue reached $3.5B; 2021 vaccine revenue guidance increased to ~$26B on contracts for ~1.6B doses.

• Pipeline development and commercial launches remain central to growth plans, with at least 6% revenue CAGR through 2025 excluding the vaccine and double-digit bottom-line growth expected.

Financial highlights

• Q1 2021 revenue increased 42% operationally; vaccine revenue and its 50% gross-profit share with BioNTech substantially affected revenue and adjusted cost of sales.

• Adjusted cost of sales reduced gross margin by 10 percentage points YoY, primarily reflecting ~8 points from the vaccine profit split and, to a lesser extent, product mix.

• Reported diluted EPS grew 44% YoY and Adjusted diluted EPS grew 47%; FX added 3% to revenue and 1% to Adjusted diluted EPS.

• Three additional U.S. selling days and four additional international selling days added ~$400M to Q1 revenue; net favorable comparison effects were ~$150M, or ~1.5 points of operational growth.

Outlook and guidance

• 2021 guidance excluding the COVID-19 vaccine: revenue of $44.6B–$46.6B, representing ~6% operational growth at midpoint; Adjusted diluted EPS of $2.50–$2.60, representing ~11% operational growth at midpoint.

• Total 2021 Adjusted diluted EPS guidance increased to $3.55–$3.65; midpoint implies 59% growth vs. 2020, including an expected 4% FX benefit and a 15% effective tax rate.

• 2021 vaccine revenue forecast increased to ~$26B; vaccine contribution is projected at 36% of total revenue, with Adjusted income before tax margin in the high 20s.

• Vaccine manufacturing capacity could reach 2.5B doses in 2021 and at least 3B doses in 2022; longer-term revenue CAGR remains at least 6% through 2025 excluding vaccine, with double-digit bottom-line growth.

• Adjusted R&D guidance rose to $9.8B–$10.3B for incremental COVID-19 and mRNA programs; Adjusted SI&A guidance remained $11B–$12B.