Pfizer Faces Reality Check With Earnings

Health and Healthcare

Published: January 27, 2015 8:20 am

Last Updated: January 27, 2015 8:23 am

Pfizer Inc. (NYSE: PFE) reported its fourth-quarter results Tuesday before the markets open as $0.54 in earnings per share (EPS) and $13.1 billion in revenue. That compared to Thomson Reuters consensus estimates of $0.53 in EPS and $12.9 billion in revenue. In the fourth quarter of the previous year, Pfizer posted $0.56 in EPS on revenue of $13.49 billion.

Reported revenues fell by $440 million, or roughly 3%, which reflected slight operational growth of $9 million and the unfavorable impact of foreign exchange of $449 million. Operational growth was driven by key products such as Lyrica, Prevnar, Eliquis and Xeljanz in the United States.

Pfizer’s segments reported revenue, compared to the same quarter in the previous year, as:

Global Innovative Pharma down 11% to $6.45 billion
Global Established Pharma up 3% to $3.75 billion
Global Vaccines 18% higher to $1.32 billion
Consumer Healthcare up 1% to $953 million
Global Oncology up 10% to $609 million
Other down 35% to $83 million

Frank D’Amelio, CFO of Pfizer, gave guidance for the year:

We are also providing our 2015 financial guidance, including ranges for reported revenues of $44.5 to $46.5 billion and for adjusted diluted EPS of $2.00 to $2.10. Our guidance for reported revenues reflects the anticipated negative impact of $3.5 billion due to recent and expected product losses of exclusivity as well as $2.8 billion as a result of recent adverse changes in essentially all foreign exchange rates relative to the U.S. dollar compared to foreign exchange rates from last year, partially offset by anticipated revenue growth from certain other products.

ALSO READ: The Bull and Bear Case for Pfizer in 2015

Early in January, Deutsche Bank maintained a Buy rating for Pfizer with a $35.00 price target, implying upside of 6.7% from Monday’s close. The highest listed analyst price target is $41.00, which implies an upside of 25%.

Shares of Pfizer closed Monday up 1% at $32.80. In Tuesday’s early bird indications, shares were down roughly 1% at $32.48. The stock has a consensus analyst price target of $34.46 and a 52-week trading range of $27.51 to $33.50.

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