Pfizer Q3 performance is outstanding

Pfizer exceeded market expectations in its third-quarter earnings report. Thanks to strong sales of its COVID-19 vaccine and antiviral drug Paxlovid, the company raised its full-year revenue guidance to consolidate its leading position in the pharmaceutical industry and respond to investors 'long-term concerns.

Pfizer's financial performance

• Earnings per share: Adjusted earnings per share reached $1.06 (expected $0.62)
• Revenue: $17.7 billion (expected to be $14.95 billion)
• Net income: $4.47 billion, compared to a net loss of $2.38 billion in the same period last year

Pfizer's adjusted earnings per share of US$1.06 were significantly higher than analysts 'expectations. The company's revenue increased by 31% year-on-year. Total revenue for the full year of 2023 is expected to be between US$61 billion and US$64 billion.Driven by a rise in COVID-19 cases in the United States and large government orders, Paxlovid's single-quarter revenue reached US$2.7 billion, far exceeding Wall Street expectations.

Faced with declining demand for COVID-19 products, Pfizer has launched a cost reduction plan, planning to achieve cost savings of US$4 billion by 2027, and will cut expenses by US$1.5 billion in the first phase.Despite strong third-quarter results, Pfizer faced pressure from activist investor Starboard Value, which called for changes in the company's management and strategy, citing the failure of some of Pfizer's previous investments to deliver expected returns.

Paxlovid's outstanding performance shows that there is still demand for COVID-19 products, in part due to a one-time contract delivery of $442 million to the U.S. government.In addition, Pfizer's COVID-19 vaccine sales reached US$1.42 billion, also exceeding analyst expectations.

Other key corporate earnings performance

• McDonald

McDonald's third-quarter results were better than expected, with adjusted earnings per share of $3.23 (expected of $3.20) and revenue of $6.87 billion.Although global same-store sales fell 1.5%, U.S. same-store sales rose 0.3%, as promotions such as the $5 package eased some of the impact of reduced consumer spending and a temporary E. coli outbreak.

• PayPal

PayPal reported adjusted earnings per share of $1.20, above expectations of $1.07, but revenue was slightly below expectations at $7.85 billion.Total payments increased by 9% year-on-year, supported by new initiatives such as Fastlane's one-click payment service, and PayPal's digital transactions continue to grow.

• British Petroleum

BP's third-quarter profit of $2.3 billion was slightly above analysts 'expectations, but posted its lowest quarterly profit in nearly four years as crude oil prices and refining margins fell.Despite the pressure, BP maintains its dividend and share repurchase program to support investors while focusing on balancing fossil fuel growth with energy transition investment.