Pfizer Inc. (NYSE: PFE) released its second-quarter financial results before the markets opened on Tuesday. The pharmaceutical giant said that it had $0.81 in earnings per share (EPS) and $13.5 billion in revenue, which compares with consensus estimates from Thomson Reuters that called for $0.74 in EPS and $13.31 billion in revenue. The same period of last year reportedly had EPS of $0.67 and $12.9 billion in revenue.

The Innovative Health (IH) segment reported that revenues increased 5% operationally in the quarter to $8.27 billion. Revenues were primarily driven by continued growth from key brands including Eliquis, Ibrance and Xeljanz globally, Prevnar 13/Prevenar 13 primarily in emerging markets and the United States, as well as Xtandi in the United States. Operational revenue growth for Eliquis, Ibrance, Xeljanz and Xtandi was 42%, 19%, 37% and 21%, respectively.

The Essential Health (EH) segment reported that revenues decreased 4% operationally to $5.19 billion. This was largely driven by a 12% operational decline in the Legacy Established Products portfolio in developed markets; a 17% operational decline in the Sterile Injectable Pharmaceuticals portfolio in developed markets; and an 11% operational decline in the Peri-LOE Products portfolio in developed markets. Apart from this, Pfizer did see 44% operational growth from biosimilars, primarily from Inflectra in certain channels in the United States, as well as in developed Europe.

Looking ahead to the 2018 full year, the company raised its expected EPS range by $0.05 to $2.95 to $3.05. Pfizer also lowered the midpoint of the full-year revenue guidance range by $500 million (now $53.0 billion to $55.0 billion) solely to reflect the recent unfavorable changes in forex rates.

The consensus estimates are $2.95 in EPS and $54.29 in revenue for the full year.

Ian Read, board chair and chief executive, commented:

We reported solid second-quarter 2018 financial results, with total company revenues up 2% operationally, driven by the continued growth of key brands such as Eliquis, Ibrance and Xeljanz, as well as biosimilars and emerging markets. The performance of these growth drivers was partially offset by product losses of exclusivity, a decline in legacy Established Products in developed markets and ongoing legacy Hospira supply shortages.

Shares of Pfizer closed Monday at $38.59, with a consensus analyst price target of $39.80 and a 52-week range of $32.32 to $39.43. Following the announcement, the stock was down 1% at $38.09 in early trading indications Tuesday.

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