Pfizer (PFE) shares are on the move after posting a mixed fourth-quarter earnings report, with adjusted earnings topping expectations, but missing revenue estimates. The pharmaceutical giant saw a smaller decline than expected in its Covid business and reiterated its full-year 2024 guidance.

Yahoo Finance’s Seana Smith and Brad Smith, take a closer look at the challenges Pfizer has face and weigh in on outlook for the coming year.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Eyek Ntekim

Video Transcript

BRAD SMITH: Let's, in the meantime, though, take a look at shares of Pfizer this morning, as they are on the move after a mixed fourth quarter report. They are higher by about 1.2%. Revenue, though, missed. That came in at $14.25 billion versus the Street's $14.38 billion that was expected.

But we're seeing a surprise beat in profits. Adjusted earnings per share coming in at $0.11 versus a loss of $0.19 that was expected here. The pharmaceutical giant reaffirming full-year 2024 fiscal guidance. And says, it's on track to deliver at least $4 billion in annual net cost savings.

Of course, the larger narrative that comes through some of the highlights even that the company had pointed out here, a continued move off of or actual contribution deceleration from community, not even deceleration, just decline, which is the COVID, of course, solution that they were able to bring to market.

But then additionally, more investment into the oncology segment. And we're hearing that pretty much across the board from some of the pharmaceutical companies.

SEANA SMITH: Yeah. We're hearing that across the board. And that is a real focus here for Pfizer following that $43 billion deal that they did-- that they have here to buy Seagen here. So a lot of the focus is going to be on the integration of that company here going forward. What exactly that is going to do to drive future revenue here for the company going forward?

Because Brad, like you said, it has certainly been a tough year for Pfizer. Up against a strong guidance comps in terms of what they had initially been expecting at the start of 2023. They had to revise their guidance twice last year to adjust for the lack of demand that they were seeing a lot of that being attributed to their COVID-19 products, in particular, their treatment, Paxlovid, there.

A bit of good news in this report, the fact that the government did not send back as much as was expected here. So Pfizer, at least, coming out at the better end of what they had initially braced for here. But going forward, another big focal point for this company is going to be on their RSV vaccine. Because right now, it generated about $515 million in sales in Q4. And the company looking to increase their market share within RSV this year.

But they did stand behind their guidance. So, at least, the Street taking this as a bit of good news. Maybe, you can say that in terms of the movement that we're seeing here ahead of the open.

BRAD SMITH: Yeah, absolutely. And they also go on to point out that two of the major areas that they're going to be laser focused on, one of them stemming from the acquisition of Seagen is going to be on that antibody business, as well going forward from here.

But then additionally, one of the other areas, this commercial strategy, you might hear them talk a little bit more about that, and how that's going to drive some of the growth that they're anticipating that actually leads them to some of the operational targets, the operational revenue targets that they had put forward within this report.

But, ultimately, mixed bag, at least, for this most recent quarter. But going forward, it'll be interesting to see where they continue to spend into oncology, and where they're perhaps trying to rightsize other parts of the business, especially with the decline that we had seen, as we were mentioning, on the COVID therapies and COVID--