Health and Healthcare
Why Pfizer Shareholders Are Smiling After Earnings
Published:
Last Updated:
When Pfizer Inc. (NYSE: PFE) reported first-quarter 2019 results before markets opened Tuesday, the drugmaker posted adjusted diluted earnings per share (EPS) of $0.85 on revenues of $13.12 billion. In the same period a year ago, the company reported EPS of $0.75 on revenues of $12.91 billion. First-quarter results also compare to the consensus estimates for EPS of $0.75 and $12.99 billion in revenues.
The company also raised its full-year EPS guidance from a prior range of $2.82 to $2.92 to a new range of $2.83 to $2.93. Pfizer also raised its guidance for adjusted other income from $100 million to $200 million. The company still expects $52 billion to $54 billion in full-year revenues.
While the company did not offer second-quarter guidance, analysts are expecting EPS of $0.75 and revenues of $13.37 billion. For the full year, analysts are looking for EPS of $2.89 and revenues of $53.25 billion.
The first-quarter was the beginning of a reorganization of Pfizer’s commercial operations into three businesses: biopharmaceuticals; Upjohn off-patent and generic established medicines; and consumer health care for the company’s over-the-counter medicines. Biopharma revenues rose 7% to $9.19 billion, Upjohn revenues rose 1% to $3.08 billion, and consumer health care revenues fell 2% to $858 million.
CEO Dr. Albert Bourla commented:
Our new commercial structure is designed to maximize today’s revenue growth opportunities while transitioning the company to a period post-2020 where we expect sustained mid-single-digit operational revenue growth through 2025.
CFO Frank D’Amelio added:
We were able to achieve 5% operational revenue growth and delivered Adjusted diluted EPS growth of 13%, primarily reflecting the strong performance of certain key products and the net impact of our share repurchases.
D’Amelio also noted that in the quarter the company returned $10.9 billion to shareholders in the form of share buybacks and dividends.
Pfizer stock traded up about 3.4% at $40.94 in the noon hour Tuesday. The 52-week range is $34.37 to $46.47, and the 12-month consensus price target is $44.00.
Credit card companies are handing out rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
