Pfizer Raises Full-Year Profit Forecast

(Reuters) – Pfizer has raised its full-year profit forecast following better-than-expected sales of its COVID-19 treatment, which helped the company exceed Wall Street's third-quarter earnings estimates on Tuesday.

Shares of the U.S. drugmaker increased by 3.2%, reaching $29.81 in premarket trading.

Pfizer (NYSE:PFE) now anticipates an annual profit in the range of $2.75 to $2.95 per share, up from its previous guidance of $2.45 to $2.65.

On an adjusted basis, the company reported earnings of $1.06 per share, surpassing the average analyst estimate of 62 cents, as per data compiled by LSEG.

Pfizer is facing pressure from activist hedge fund Starboard to reverse the decline in its shares and prove tangible results from its promised turnaround.

To address a significant decrease in sales from its COVID vaccine and antiviral pill Paxlovid, the company has pursued strategic deals, including its $43 billion acquisition of cancer drugmaker Seagen. Additionally, Pfizer plans two separate rounds of cost reductions intended to save up to $5.5 billion by 2027.

Starboard has urged Pfizer's board to hold its management accountable for the company's underperformance.