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.

The Average American Has No Idea How Much Money You Can Make Today ^(Sponsor)

The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.

But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.

Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

¹https://www.fdic.gov/national-rates-and-rate-caps