Pfizer Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Pfizer (NYSE:PFE) will unveil its latest earnings tomorrow, Tuesday, January 29, 2013. Pfizer is a global pharmaceutical company which develops and manufactures prescription medications for humans and animals.

Pfizer Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 44 cents per share, a decline of 12% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 49 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 44 cents during the last month. For the year, analysts are projecting net income of $2.16 per share, a decline of 6.5% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by one cent, reporting profit of 53 cents per share against a mean estimate of net income of 52 cents per share.

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A Look Back: In the third quarter, profit fell 14.2% to $3.21 billion (43 cents a share) from $3.74 billion (48 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 18.7% to $13.98 billion from $17.19 billion.

Here’s how Pfizer traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

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Wall St. Revenue Expectations: Analysts predict a decline of 14% in revenue from the year-earlier quarter to $14.4 billion.

Stock Price Performance: Between November 23, 2012 and January 23, 2013, the stock price had risen $2.12 (8.6%), from $24.53 to $26.65. The stock price saw one of its best stretches over the last year between November 27, 2012 and December 5, 2012, when shares rose for seven straight days, increasing 5.7% (+$1.39) over that span. It saw one of its worst periods between March 30, 2012 and April 13, 2012 when shares fell for 10 straight days, dropping 3.5% (-79 cents) over that span.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 4.6% in the fourth quarter of the last fiscal year, 6.6% in first quarter and 11.3% in the second quarter and then fell again in the third quarter.

The company is trying to stem some negative momentum heading into this earnings announcement. Profit has dropped by a year-over-year average of 14.8% over the past four quarters.

Analyst Ratings: With 14 analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.96 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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