Pfizer (PFE) Tops Q4 EPS by 6c, FY18 EPS Guidance Beats, Sees $15B Repatriation Tax Liability
(Updated - January 30, 2018 6:49 AM EST)
Pfizer (NYSE: PFE) reported Q4 EPS of $0.62, $0.06 better than the analyst estimate of $0.56. Revenue for the quarter came in at $13.7 billion versus the consensus estimate of $13.68 billion.
Pfizer’s 2018 financial guidance is presented below. Financial guidance reflects a full year contribution from Consumer Healthcare. Pfizer continues to expect that any decision regarding strategic alternatives for Consumer Healthcare will be made during 2018. Financial guidance also assumes no generic competition for Lyrica in the U.S. until June 2019, which is contingent upon a six-month patent-term extension granted by the U.S. Food and Drug Administration (FDA) for pediatric exclusivity, which the company is currently pursuing.
| Revenues | $53.5 to $55.5 billion | |
| Adjusted Cost of Sales(2) as a Percentage of Revenues | 20.5% to 21.5% | |
| Adjusted SI&A Expenses(2) | $14.0 to $15.0 billion | |
| Adjusted R&D Expenses(2) | $7.4 to $7.9 billion | |
| Adjusted Other (Income)/Deductions(2) | Approximately $400 million of income | |
| Effective Tax Rate on Adjusted Income(2) | Approximately 17.0% | |
| Adjusted Diluted EPS(2) | $2.90 to $3.00 |
(Street sees FY18 EPS of $2.78 on revenue of $53.88 billion)
“Finally, regarding tax reform, I am pleased that the aspects of most importance to us were addressed in the new tax code, strengthening our ability to make capital allocation decisions that maximize patient benefit and enhance shareholder value. In addition to an anticipated effective tax rate on Adjusted income(2) in 2018 that is meaningfully lower than in prior years, Pfizer anticipates a repatriation tax liability of approximately $15 billion payable to the U.S. Treasury over eight years as a result of the passage of the TCJA,” Mr. D’Amelio concluded.
For earnings history and earnings-related data on Pfizer (PFE) click here.