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.

Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?

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.”

Key Stats:

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.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Is Now The Time to Buy This Depressed Dow Stock?

Gold and Silver Lessons from Pawn Stars>>

Bank of America Shares: BUY or SELL?