We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Pfizer (PFE) Tops on Q2 Earnings, Revenues, Maintains View
Read MoreHide Full Article
Pfizer Inc.’s (PFE - Free Report) second quarter earnings per share came in at 64 cents, a couple of cents above the Zacks Consensus Estimate and 14% above the year-ago earnings.
Revenues were also well above expectations. Pfizer posted revenues of $13.1 billion, compared to the Zacks Consensus Estimate of $12.9 billion and up 11% from the year-ago period.
Hospira, Cancer Drugs Boost Sales
While currency movement cut Pfizer’s second quarter revenues by 3% ($302 million), operational growth was 13% ($1.6 billion). International revenues declined 1% to $6.8 billion. Meanwhile, U.S. revenues grew 27% to $6.3 billion.
While Pfizer Innovative Health (IH; formerly the Innovative Products business) sales grew 7% from the year-ago period to $7.1 billion, Pfizer Essential Health (EH; formerly the Established Products business) sales recorded year-over-year growth of 16% to $6 billion. This included Hospira sales of $1.1 billion.
IH revenues were driven by continued strong momentum from Ibrance in the U.S., strong operational growth from Eliquis globally and Lyrica and Xeljanz, primarily in the U.S. This was partially offset by the expected decline in Prevnar 13 revenues for adults in the U.S. reflecting a high initial capture rate of the eligible population, which resulted in a smaller remaining “catch up” opportunity compared to the year-ago quarter. The expiration of the collaboration agreement to co-promote Rebif in the U.S. also impacted revenues.
EH revenues benefited from the inclusion of legacy Hospira operations that was partially offset by the loss of exclusivity and associated generic competition for products like Zyvox (in the U.S. and certain developed Europe markets) as well as Lyrica (certain developed Europe markets).
Consumer Healthcare revenues remained flat at $837 million. Global Oncology revenues increased 54% to $1.1 billion with performance being driven by Xalkori and Ibrance. Global Vaccine revenues declined 14% to $1.4 billion. Pfizer recorded biosimilars revenues of $78 million.
Adjusted selling, informational and administrative (SI&A) expenses grew 2% to $3.4 billion during the quarter. Adjusted R&D expenses remained flat at $1.7 billion.
2016 Guidance Maintained
Pfizer continues to expect earnings of $2.38 - $2.48 per share on revenues of $51 billion - $53 billion. The Zacks Consensus Estimate for earnings and revenues are currently $2.46 per share and $52.6 billion, respectively.
Pfizer expects SI&A spend of $13.7 billion - $14.7 billion and R&D spend of $7.4 billion - $7.8 billion.
Pfizer completed a $5 billion accelerated share repurchase agreement in Jun 2016.
Our Take
Pfizer’s second quarter results surpassed expectations again. Earnings were boosted by higher revenues, a lower share count and a lower tax rate.
While Pfizer continues to face headwinds in the form of genericization, unfavorable currency movement and the expiration of a few co-promotion agreements, new product sales, contribution from Hospira, cost-cutting efforts and share buybacks should help the company achieve its guidance.
Pfizer is a Zacks Rank #3 (Hold) stock. Some better-ranked stocks in the large cap pharma sector include Johnson & Johnson (JNJ - Free Report) , Bristol-Myers Squibb Company (BMY - Free Report) and Eli Lilly and Company (LLY - Free Report) -- all three are Zacks Rank #2 (Buy) stocks. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Pfizer (PFE) Tops on Q2 Earnings, Revenues, Maintains View
Pfizer Inc.’s (PFE - Free Report) second quarter earnings per share came in at 64 cents, a couple of cents above the Zacks Consensus Estimate and 14% above the year-ago earnings.
Revenues were also well above expectations. Pfizer posted revenues of $13.1 billion, compared to the Zacks Consensus Estimate of $12.9 billion and up 11% from the year-ago period.
Hospira, Cancer Drugs Boost Sales
While currency movement cut Pfizer’s second quarter revenues by 3% ($302 million), operational growth was 13% ($1.6 billion). International revenues declined 1% to $6.8 billion. Meanwhile, U.S. revenues grew 27% to $6.3 billion.
While Pfizer Innovative Health (IH; formerly the Innovative Products business) sales grew 7% from the year-ago period to $7.1 billion, Pfizer Essential Health (EH; formerly the Established Products business) sales recorded year-over-year growth of 16% to $6 billion. This included Hospira sales of $1.1 billion.
IH revenues were driven by continued strong momentum from Ibrance in the U.S., strong operational growth from Eliquis globally and Lyrica and Xeljanz, primarily in the U.S. This was partially offset by the expected decline in Prevnar 13 revenues for adults in the U.S. reflecting a high initial capture rate of the eligible population, which resulted in a smaller remaining “catch up” opportunity compared to the year-ago quarter. The expiration of the collaboration agreement to co-promote Rebif in the U.S. also impacted revenues.
EH revenues benefited from the inclusion of legacy Hospira operations that was partially offset by the loss of exclusivity and associated generic competition for products like Zyvox (in the U.S. and certain developed Europe markets) as well as Lyrica (certain developed Europe markets).
Consumer Healthcare revenues remained flat at $837 million. Global Oncology revenues increased 54% to $1.1 billion with performance being driven by Xalkori and Ibrance. Global Vaccine revenues declined 14% to $1.4 billion. Pfizer recorded biosimilars revenues of $78 million.
Adjusted selling, informational and administrative (SI&A) expenses grew 2% to $3.4 billion during the quarter. Adjusted R&D expenses remained flat at $1.7 billion.
2016 Guidance Maintained
Pfizer continues to expect earnings of $2.38 - $2.48 per share on revenues of $51 billion - $53 billion. The Zacks Consensus Estimate for earnings and revenues are currently $2.46 per share and $52.6 billion, respectively.
Pfizer expects SI&A spend of $13.7 billion - $14.7 billion and R&D spend of $7.4 billion - $7.8 billion.
Pfizer completed a $5 billion accelerated share repurchase agreement in Jun 2016.
Our Take
Pfizer’s second quarter results surpassed expectations again. Earnings were boosted by higher revenues, a lower share count and a lower tax rate.
While Pfizer continues to face headwinds in the form of genericization, unfavorable currency movement and the expiration of a few co-promotion agreements, new product sales, contribution from Hospira, cost-cutting efforts and share buybacks should help the company achieve its guidance.
PFIZER INC Price
PFIZER INC Price | PFIZER INC Quote
Pfizer is a Zacks Rank #3 (Hold) stock. Some better-ranked stocks in the large cap pharma sector include Johnson & Johnson (JNJ - Free Report) , Bristol-Myers Squibb Company (BMY - Free Report) and Eli Lilly and Company (LLY - Free Report) -- all three are Zacks Rank #2 (Buy) stocks. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>