Pfizer's Retail Traders Cheer Better-Than-Expected Q4 Even As Stock Dips: ‘Another Beat And Still Crazy Cheap'

Under its restructuring program, Pfizer said it remains on track to deliver $4.5 billion in cost savings by the end of 2025.

Shares of Pfizer Inc. (PFE) slipped nearly 1.5% on Tuesday afternoon, even as the pharmaceutical giant posted a stronger-than-expected fourth-quarter report that energized retail traders.

Pfizer reported adjusted earnings per share (EPS) of $0.63, topping Wall Street's $0.46 estimate. Revenue surged 22% year-over-year to $17.8 billion, beating expectations of $17.26 billion.

The outperformance was partially due to better-than-expected demand for Pfizer’s COVID-19 products, including its antiviral Paxlovid and vaccine. 

The company also highlighted $3.4 billion in revenue from its legacy Seagen cancer portfolio and strong sales from Vyndaqel (for a type of cardiomyopathy) and blood thinner Eliquis, among others.

Under its restructuring program, Pfizer said it remains on track to deliver $4.5 billion in cost savings by the end of 2025.

Despite the stock trading lower, Pfizer's 101,000 followers on Stocktwits sent sentiment soaring to 'extremely bullish' levels.

"They could announce a cure for cancer and this thing would still sell off," said one user.

"Another beat and still crazy cheap," said another user, referring to Pfizer consistently exceeding earnings and revenue expectations in the past five quarters.

Pfizer shares trade at 9.7 times estimated 2025 earnings, significantly lower than Eli Lilly's 37.3 and Novo Nordisk's 23.8 multiples, reinforcing the argument that the stock is cheap.

Tuesday’s stock dip is likely due to Pfizer reaffirming its 2025 revenue outlook of $61 billion to $64 billion, below the $63 billion consensus. The midpoint of the EPS guidance of $2.80 to $3.00 trailed the $2.93 estimate. 

As noted in December, that forecast factors in a $1 billion revenue hit from the Inflation Reduction Act's Medicare Part D overhaul.

Pfizer's stock soared to all-time highs in 2021 during the peak of its COVID-19 vaccine success but has since lost over 50% as pandemic-related revenues faded.

However, Wall Street remains cautious about Pfizer's long-term growth as it pivots away from COVID-related revenue to focus on oncology and strategic acquisitions to strengthen its drug pipeline.

A potential wildcard is Pfizer’s obesity pill, which is still in development. A decision on its future is expected by summer.

Pfizer shares have declined about 4% over the past year.

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