Pfizer Says Its Biggest Headwinds Are Finally Easing. Does That Change the Story for This Ultra-High-Yield Dividend Stock?
Pfizer's rebound is well underway.
Overview
The past few years have been challenging for Pfizer (NYSE: PFE). The company has faced macroeconomic problems, significantly lower sales from its coronavirus portfolio, and looming patent cliffs, including for its best-selling drug, the anticoagulant Eliquis. However, according to CEO Albert Bourla, Pfizer's headwinds are easing. Is he right?
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At a recent conference, Bourla argued that Pfizer faced three major headwinds in 2025: tariffs and drug-pricing policies, declining sales of its coronavirus products, and patent cliffs. He goes on to argue that the pharmaceutical giant has addressed the first challenge, notably by signing agreements with the U.S. government that granted the company a tariff break in exchange for selling certain medicines at reduced prices in the country. And while COVID-related sales remain unimpressive this year, as Bourla points out, Pfizer has performed fairly well and has generally exceeded Wall Street's earnings-per-share (EPS) estimates in recent years. In fact, over the past 10 quarterly reporting periods, the drugmaker has exceeded EPS expectations in all 10 while beating revenue expectations in nine of them, according to Bourla.
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Originally published at www.fool.com.