Pfizer, the well-known US pharmaceutical company, continues to face pressure from activist investor Starboard. Despite facing a significant decline in sales of its COVID-19-related products, the third quarter of 2024 delivered a positive surprise in the form of results that beat market expectations.

Sales of Paxlovide, the antiviral Pfizer $PFE developed to treat COVID-19, exceeded Wall Street expectations, contributing to the company's positive stock performance.

Pfizer reported third-quarter sales of $17.70 billion, which was more than expected ($14.96 billion). This positive result was mainly boosted by sales of Paxlovide, which generated $2.7 billion in the period, while analysts had predicted sales of only $456.4 million.

The company's CEO, Albert Bourla, said in prepared statements that demand for Paxlovide has stabilized and is closely related to each wave of COVID-19. He also added that strong commercial performance and higher infection rates contributed to the better-than-expected results.

Pfizer also decided to raise its full-year profit and sales forecasts. It expects revenue from Comirnata (COVID-19 vaccine) and Paxlovide to reach $10.5 billion, up from its previous forecast of $8.5 billion. Comirnata vaccine sales reached $1.42 billion for the quarter, again beating analysts' expectations, who had forecast $870 million.

Activist hedge fund Starboard Value, as well as investors and analysts, have expressed the need to see improvement in profitability due to cost savings and revenue growth from recent deals. Pfizer also raised its earnings-per-share estimates to $2.75 to $2.95, up from a previous forecast of $2.45 to $2.65. On an adjusted basis, Pfizer reported earnings of $1.06 per share, beating analysts' average estimate of 62 cents.

Although Pfizer stock is still trading at about half of its pandemic highs, the latest results show the company is on track to restore growth and stability in turbulent times.

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Source: CNN, Yahoo, Reuters.