S&P 500 (NYSE:SPY) component Pfizer (NYSE:PFE) will unveil its latest earnings tomorrow, Tuesday, July 31, 2012. 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 net income of 55 cents per share, a decline of 8.3% 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 56 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 55 cents during the last month. For the year, analysts are projecting profit of $2.20 per share, a decline of 4.8% from last year.
Past Earnings Performance: Last quarter, the company beat estimates by 2 cents, coming in at net income of 58 cents a share versus the estimate of profit of 56 cents a share. It marked the fourth straight quarter of beating estimates.
Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?
A Look Back: In the first quarter, profit fell 19.3% to $1.79 billion (24 cents a share) from $2.22 billion (28 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 6.6% to $15.4 billion from $16.5 billion.
Wall St. Revenue Expectations: Analysts predict a decline of 12.2% in revenue from the year-earlier quarter to $14.91 billion.
Stock Price Performance: Between May 29, 2012 and July 27, 2012, the stock price had risen $1.70 (766%), from $22.13 to $23.82. The stock price saw one of its best stretches over the last year between July 11, 2012 and July 19, 2012, when shares rose for seven straight days, increasing 6.5% (+$1.46) 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.
An income boost this time around would be welcome news after profit declines in the past two quarters. Net income dropped 50.2% in the fourth quarter of the last fiscal year and then again in the first quarter.
On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 4.6% in the fourth quarter of the last fiscal year and dropped again in the first quarter.
Analyst Ratings: With 15 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 2.02 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.
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 by Xignite Financials. Earnings estimates provided by Zacks)
Don’t Miss These Hot Additional Stories: