Health and Healthcare

What to Expect When Pfizer Reports Tuesday

Chris Lange

Published: January 28, 2019 10:15 am

Last Updated: January 31, 2020 1:29 am

Pfizer Inc. (NYSE: PFE) is scheduled to release its fourth-quarter financial results before the markets open on Tuesday. Consensus analyst estimates call for $0.64 in earnings per share (EPS) and $13.94 billion in revenue. The same period of last year reportedly had $0.62 in EPS and $13.7 billion in revenue.

In the most recent quarter, Pfizer announced a joint venture with GlaxoSmithKline PLC (NYSE: GSK), wherein these two firms will create a premier global consumer health care company combining their robust iconic brands.

The boards of directors of both companies have unanimously approved the transaction, under which Pfizer will contribute its consumer health care business to GlaxoSmithKline’s existing consumer health care business. The 2017 global sales for the combined business were roughly $12.7 billion.

Also under the terms of the transaction, Pfizer will receive a 32% equity stake in the joint venture, entitling Pfizer to its pro rata share of the joint venture’s earnings and dividends, which will be paid on a quarterly basis. And Pfizer will have the right to appoint three out of the nine members of the joint venture’s board.

The transaction is expected to deliver $650 million in peak cost synergies and to be slightly accretive for Pfizer in each of the first three years after the close of the transaction, which is expected during the second half of 2019.

Overall, Pfizer has underperformed the broad markets in 2019, with its stock down about 7% in this time. However, over the past 52 weeks, the stock is actually up 10%.

A few analysts weighed in on Pfizer ahead of the report:

• UBS Group has a Neutral rating.
• Credit Suisse has a Neutral rating with a $45 price target.
• Cantor Fitzgerald has a Buy rating and a $53 price target.
• JPMorgan has a Neutral rating with a $46 price target.
• Atlantic Securities has a Buy rating and a $54 price target.

Shares of Pfizer were last seen trading at $40.14, with a 52-week range of $33.20 to $46.47. The stock has a consensus analyst price target of $45.35.