Pfizer Earnings: Expected COVID-19 Sales Decline Pressures Results, but Remaining Business Is Solid

Pfizer reported third-quarter results largely in line with our expectations, and we are not making any changes to our fair value estimate. Results largely tracked Pfizer’s recently updated 2023 guidance that includes a major step down in COVID-19 vaccine (Comirnaty) and treatment (Paxlovid) sales. With the stock’s pull back from the peak of the pandemic, we believe the market is underappreciating the tail potential of Pfizer’s COVID-19 sales and next-generation drugs.