Pfizer (PFE) Tops Q3 EPS by 2c, Lifts FY EPS Guidance
(Updated - October 31, 2017 6:49 AM EDT)
Pfizer (NYSE: PFE) reported Q3 EPS of $0.67, $0.02 better than the analyst estimate of $0.65. Revenue for the quarter came in at $13.17 billion versus the consensus estimate of $13.17 billion.
EXECUTIVE COMMENTARY
Ian Read, Chairman and Chief Executive Officer, stated, “We reported solid third-quarter 2017 financial results and raised the midpoint of the range for our 2017 Adjusted diluted EPS(2) guidance. Innovative Health revenues grew 11% operationally, primarily driven by the performance of our key growth drivers, notably Ibrance, Eliquis, Xtandi and Xeljanz, all of which are products that are early in their patent-protected lifecycle in attractive therapeutic areas. While Essential Health revenues remained challenged primarily due to continued headwinds from products that recently lost marketing exclusivity and product supply, we had solid operational growth in emerging markets and in biosimilars.
“Looking ahead, we are encouraged by the convergence of two positive trends: an expected decline in the unfavorable revenue impact associated with product losses of exclusivity and the beginning of an expected multi-year wave of potential new product launches and product line extensions driven by our pipeline. We believe that the convergence of these trends, coupled with anticipated continued strong growth from the aforementioned innovative products, positions the Company for long-term success,” Mr. Read concluded.
Frank D’Amelio, Executive Vice President, Business Operations and Chief Financial Officer, stated, “Overall, I am pleased with our third-quarter 2017 financial results, including 2% operational revenue growth after excluding the net impact of acquisitions and divestitures completed in 2016 and the first nine months of 2017. As a result of our strong performance to date in 2017, we narrowed the ranges for certain 2017 financial guidance components, including a $0.03 increase to the midpoint of our range for Adjusted diluted EPS(2) to a range of $2.58 to $2.62. The midpoint of our new guidance range for Adjusted diluted EPS(2) implies 8% growth compared with last year. Finally, earlier this month, we announced that we are reviewing strategic alternatives for our Consumer Healthcare business.”
2017 FINANCIAL GUIDANCE(6)
Pfizer’s updated 2017 financial guidance is presented below:
| Revenues | $52.4 to $53.1 billion | |||
| (previously $52.0 to $54.0 billion) | ||||
| Adjusted Cost of Sales(2) as a Percentage of Revenues | 20.0% to 20.5% | |||
| (previously 20.0% to 21.0%) | ||||
| Adjusted SI&A Expenses(2) | $14.0 to $14.5 billion | |||
| (previously $13.7 to $14.7 billion) | ||||
| Adjusted R&D Expenses(2) | $7.5 to $7.8 billion | |||
| (previously $7.5 to $8.0 billion) | ||||
| Adjusted Other (Income)/Deductions(2) | Approximately $500 million of income | |||
| (previously approximately $200 million of income) | ||||
| Effective Tax Rate on Adjusted Income(2) | Approximately 23.0% | |||
| Adjusted Diluted EPS(2) | $2.58 to $2.62 | |||
| (previously $2.54 to $2.60) |
(Street sees FY EPS of 2.56 on revenue of $52.72 billion)
For earnings history and earnings-related data on Pfizer (PFE) click here.