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Pfizer (PFE) Misses on Q3 Earnings and Sales; Lowers View
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Pfizer Inc.’s (PFE - Free Report) is one of the most well-known names in the pharmaceutical sector not just for its medicines and vaccines but also for its consumer healthcare products. This New York-based company is well known for products like Prevnar, Lyrica, Lipitor and Celebrex among others.
However, like many of its peers, PFE is facing generic competition and pricing pressure for several products like Lipitor, Norvasc, Protonix, Camptosar, Celebrex and Zoloft. The influx of generic competition will not only put downward pressure on the company’s pricing, it will also result in gross margins contracting.
In this scenario, investor focus remains on late-stage pipeline candidates and their commercial potential and performance of new products apart from the usual top-and bottom-line numbers. While the Sep 2015 Hospira acquisition has significantly expanded Pfizer's sterile injectable and biosimilar capabilities, the Sep 2016 acquisition of Medivation has strengthened Pfizer’s cancer franchise by adding prostate cancer treatment, Xtandi, to its portfolio.
PFE has a pretty good earnings track record with the company delivering positive earnings surprises in each of the last four quarters with an average surprise of 11.16%.
Currently, PFE has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: PFE missed third quarter earnings which came in at 61 cents while our consensus called for EPS of 62 cents.
Revenue: Revenues also missed expectations. Pfizer posted revenues of $13.05 billion, compared to our consensus estimate of $13.10 billion. Unfavorable currency movement cut Pfizer’s second quarter revenues by 2% ($224 million).
Discontinuing Bococizumab: In a separate press release, Pfizer announced the decision to discontinue development of its pipeline candidate, bococizumab,a PCSK9 inhibitor, which was being evaluated for the treatment of hyperlipidemia and prevention of cardiovascular events. Bococizumab wasin a phase III program for LDL-C (bad cholesterol) reduction.
Cuts EPS Guidance: The company raised its R&D expense guidance to account for discontinuation of the bococizumab program.
R&D expenses are now expected in the range of $7.8 to $8.1 billion compared to $7.4 billion - $7.8 billion previously.
Adjusted earnings per share are now expected in the range of $2.38-$2.43 versus $2.38 - $2.48 per share expected previously.
Pre-Market Trading: Shares declined 1% in pre-market trading.
Check back later for our full write up on this PFE earnings report later!
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Pfizer (PFE) Misses on Q3 Earnings and Sales; Lowers View
Pfizer Inc.’s (PFE - Free Report) is one of the most well-known names in the pharmaceutical sector not just for its medicines and vaccines but also for its consumer healthcare products. This New York-based company is well known for products like Prevnar, Lyrica, Lipitor and Celebrex among others.
However, like many of its peers, PFE is facing generic competition and pricing pressure for several products like Lipitor, Norvasc, Protonix, Camptosar, Celebrex and Zoloft. The influx of generic competition will not only put downward pressure on the company’s pricing, it will also result in gross margins contracting.
In this scenario, investor focus remains on late-stage pipeline candidates and their commercial potential and performance of new products apart from the usual top-and bottom-line numbers. While the Sep 2015 Hospira acquisition has significantly expanded Pfizer's sterile injectable and biosimilar capabilities, the Sep 2016 acquisition of Medivation has strengthened Pfizer’s cancer franchise by adding prostate cancer treatment, Xtandi, to its portfolio.
PFE has a pretty good earnings track record with the company delivering positive earnings surprises in each of the last four quarters with an average surprise of 11.16%.
Currently, PFE has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: PFE missed third quarter earnings which came in at 61 cents while our consensus called for EPS of 62 cents.
PFIZER INC Price and EPS Surprise
PFIZER INC Price and EPS Surprise | PFIZER INC Quote
Revenue: Revenues also missed expectations. Pfizer posted revenues of $13.05 billion, compared to our consensus estimate of $13.10 billion. Unfavorable currency movement cut Pfizer’s second quarter revenues by 2% ($224 million).
Discontinuing Bococizumab: In a separate press release, Pfizer announced the decision to discontinue development of its pipeline candidate, bococizumab,a PCSK9 inhibitor, which was being evaluated for the treatment of hyperlipidemia and prevention of cardiovascular events. Bococizumab wasin a phase III program for LDL-C (bad cholesterol) reduction.
Cuts EPS Guidance: The company raised its R&D expense guidance to account for discontinuation of the bococizumab program.
R&D expenses are now expected in the range of $7.8 to $8.1 billion compared to $7.4 billion - $7.8 billion previously.
Adjusted earnings per share are now expected in the range of $2.38-$2.43 versus $2.38 - $2.48 per share expected previously.
Pre-Market Trading: Shares declined 1% in pre-market trading.
Check back later for our full write up on this PFE earnings report later!
Confidential from Zacks
Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>