Pfizer Earnings: Here’s Why Investors are Selling Shares Now

Pfizer Inc. (NYSE:PFE) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 3.22%.

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Pfizer Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 6.9% to $0.54 in the quarter versus EPS of $0.58 in the year-earlier quarter.

Revenue: Decreased 12.37% to $13.5 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Pfizer Inc. reported adjusted EPS income of $0.54 per share. By that measure, the company missed the mean analyst estimate of $0.56. It missed the average revenue estimate of $14 billion.

Quoting Management: Ian Read, Chairman and Chief Executive Officer, stated, “As we begin 2013, we continue to generate attractive returns for our shareholders. We are clearly seeing the benefits of the investments we’ve been making in our innovative core, as evidenced by recent key product launches, including Eliquis, Xeljanz and various oncology products, as well as significant progress within our mid-to-late stage product pipeline, most notably palbociclib. Additionally, I am very pleased with the successful completion of the Zoetis(1) IPO and a related debt offering, and with the value these actions have created thus far for Pfizer’s shareholders. We remain focused on driving innovation and managing the business in the context of the challenging operating environment to ensure Pfizer remains well-positioned for long-term value creation, all in the best interests of our shareholders.”

Key Stats (on next page)…

Revenue decreased 10.41% from $15.07 billion in the previous quarter. EPS increased 14.89% from $0.47 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.59 and has not changed. For the current year, the average estimate is a profit of $2.28, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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