Pfizer (PFE) Q4 2021 earnings summary

Executive summary

• FY 2021 revenue rose 92% operationally to $81.3B and Adjusted diluted EPS rose 92% operationally to $4.42, both record results.

• R&D investment increased to $10.5B from $8.9B in 2020; 13 pivotal clinical studies began, the highest number ever.

Financial highlights

• Q4 revenue increased 106% operationally, driven by Comirnaty and strong performance from other growth drivers.

• Q4 reported diluted EPS grew 293%; Adjusted diluted EPS grew 152%. FX reduced revenue growth by 1% and benefited Adjusted diluted EPS by 4%, or $0.02.

• FY 2021 operational revenue growth excluding Comirnaty direct sales and alliance revenues and Paxlovid was 6%; Q4 revenue on that basis declined 2% operationally.

• Adjusting Q4 for unusual vaccine comparisons and fewer selling days, revenue growth was ~7%; fewer selling days reduced revenue by ~ $500M, or 4 percentage points.

Outlook and guidance

• FY 2022 revenue guidance is $98B-$102B, with 24% operational growth at the midpoint; includes ~ $1.1B negative FX impact and ~ $300M of lost Meridian sales.

• FY 2022 Comirnaty revenue is expected to be ~ $32B and Paxlovid sales ~ $22B; excluding both, revenue is forecast at $45B-$47B, or 5% operational growth at midpoint.

• FY 2022 Adjusted diluted EPS guidance is $6.35-$6.55, or 47% operational growth at midpoint, including a $0.06 negative FX impact; adjusted tax rate is ~16%.

• FY 2022 guidance assumes 5.8B weighted average shares, ~100M above 2021, reducing midpoint EPS by ~$0.10; no share repurchases are expected.

• At least 6% revenue CAGR is expected from 2020 through 2025; 2022 non-COVID revenue growth is guided below that rate, with quarterly and annual variability expected.