Why Pfizer Is Tripping Over Itself With Earnings

By Chris Lange Updated Jan 11, 3:40PM EST · Published Oct 30, 8:40AM EDT

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Why Pfizer Is Tripping Over Itself With Earnings — © Avosb / Thinkstock

Pfizer Inc. (NYSE: PFE) reported its most recent quarterly results before the markets opened on Tuesday. The pharmaceutical giant said that it had $0.69 in earnings per share (EPS) and $13.3 billion in revenue, compared with consensus estimates of $0.75 in EPS and $13.53 billion in revenue. In the same period of last year, it posted EPS of $0.67 on revenue of $13.17 billion.

During the most recent quarter, the company repurchased $1.1 billion of common stock, as well as $9.0 billion of common stock year to date. Pfizer now has its sights set on repurchasing a total of $12 billion worth of common stock in 2018.

In terms of its segments, the company reported as follows:

Innovative Health (IH) revenues increased 5% operationally to $8.47 billion, primarily driven by continued growth from key brands including: Eliquis (up 36%), Ibrance (up 12%), Prevnar (up 12%), Xtandi (up 26%).

Essential Health (EH) revenues declined 4% operationally to $4.83 billion, negatively impacted primarily by a 14% operational decline in the Legacy Established Products (LEP) portfolio in developed markets and a 17% operational decline in the Peri-LOE Products portfolio.

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Looking ahead to the 2018 full year, the company expects to see EPS in the range of $2.98 to $3.02 and revenues between $53.0 billion and $53.7 billion. Consensus estimates call for $2.99 in EPS and $54.15 billion in revenue for the year.

Ian Read, board chair and chief executive, commented:

We reported solid third-quarter 2018 financial results, with total company revenues up 2% operationally, driven by the continued growth of key brands such as Eliquis, Ibrance, Prevnar 13, Xeljanz and Xtandi, 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 sterile injectable supply shortages.

Shares of Pfizer closed Monday at 43.23, with a consensus analyst price target of $43.11. The stock has a 52-week range of $33.20 to $45.81. Following the announcement, shares were down 3.5% at $41.70 in early trading indications Tuesday.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.