Pfizer Earnings: Profit Jump BREAKS Losing Streak
Falling revenue did not prevent S&P 500 (NYSE:SPY) component Pfizer Inc. (NYSE:PFE) from reporting a profit boost in the second quarter. Pfizer is a global pharmaceutical company which develops and manufactures prescription medications for humans and animals.
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Pfizer Inc. Earnings Cheat Sheet
Results: Net income for the large-cap pharmaceutical rose to $3.25 billion (43 cents per share) vs. $2.61 billion (33 cents per share) in the same quarter a year earlier. This marks a rise of 24.6% from the year-earlier quarter.
Revenue: Fell 8.7% to $15.06 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Pfizer Inc. fell short of the mean analyst estimate of 55 cents per share. It fell short of the average revenue estimate of $15.47 billion.
Quoting Management: Ian Read, Chairman and Chief Executive Officer, stated, “We delivered solid results this quarter. This performance was achieved despite the $1.8 billion, or 11%, negative impact on revenues of product losses of exclusivity compared with the year-ago period, primarily Lipitor in most major markets. Worldwide revenues from many of our key medicines, including Celebrex, Enbrel, Lyrica and the Prevnar/Prevenar franchise, increased and our Emerging Markets unit generated 14% operational revenue growth, driven primarily by our targeted investments in China and Russia. Overall, I am confident that Pfizer is well-positioned for long-term success given the potential of our innovative late-stage and emerging pipeline, strong operating cash flow, streamlined organization and disciplined approach to capital allocation.”
After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the first quarter, it topped the mark by 2 cents, and in the fourth quarter of the last fiscal year, it was ahead by 3 cents.
Last quarter’s profit increase breaks a two-quarter streak of year-over-year profit decreases. Net income fell 19.3% in the first quarter and in the fourth quarter of the last fiscal year.
Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from 58 cents a share to 56 cents over the last ninety days. The average estimate for the fiscal year is $2.20 per share, down from $2.25 ninety days ago.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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