Pfizer (NYSE: PFE) reported Q1 EPS of $0.80, $0.07 better than the analyst estimate of $0.73. Revenue for the quarter came in at $12 billion versus the consensus estimate of $11.89 billion.

GUIDANCE:

Pfizer sees FY2020 EPS of $2.82-$2.92, versus the consensus of $2.86. Pfizer sees FY2020 revenue of $48.5-50.5 billion, versus the consensus of $49.33 billion.

Today’s guidance update reflects management’s current expectations for operational performance, foreign exchange rates as well as various COVID-19-related uncertainties, primarily those related to the severity, duration and global macroeconomic impact of the pandemic. Key guidance assumptions related to COVID-19 include:

• Patient visits with physicians, vaccinations and elective surgical procedures will rebound starting in second-half 2020 and align more closely with historical levels;
• New-to-brand prescription trends for certain key products and vaccination rates will resume on a similar trajectory to what was seen in 2019, beginning in second-half 2020;
• Access to prescribers for sales force colleagues is restored in second-half 2020;
• Clinical trial enrollment, including new study starts, will fully resume in second-half 2020;
• Pfizer’s manufacturing and supply chain activities are not materially disrupted; and
• Pfizer’s investments in potential treatments and a potential vaccine for COVID-19 continue throughout 2020.

Based on these assumptions, Pfizer reaffirmed or updated the following 2020 financial guidance components for Total Company(7), which reflects a full year of revenue and expense contributions from Biopharma and Upjohn:

• Guidance range for revenues was reaffirmed at $48.5 to $50.5 billion, absorbing a $0.6 billion unfavorable impact from changes in foreign exchange rates in relation to the U.S. dollar since mid-January 2020, primarily the weakening of the Brazilian real, the euro, the Mexican peso and the Chinese yuan.
• Guidance range for Adjusted cost of sales(3) as a percentage of revenues was lowered by 400 basis points to a range of 19.5% to 20.5%, primarily to reflect the favorable impact of product mix and other efficiencies.
• Guidance range for Adjusted SI&A expenses(3) was lowered by $500 million to a range of $11.5 to $12.5 billion, primarily to reflect incremental cost-savings opportunities, primarily reductions in indirect SI&A spend associated with corporate enabling functions, as well as actual and anticipated COVID-19-related spending reductions.
• Guidance range for Adjusted R&D expenses(3) was increased by $500 million to a range of $8.6 to $9.0 billion, solely to reflect incremental investments Pfizer anticipates making in 2020 to combat the COVID-19 pandemic, including development of potential anti-viral treatments and a potential vaccine, as well as the evaluation of existing Pfizer medicines, which are the subject of novel research projects for investigation in COVID-19 patients.
• Guidance range for Adjusted diluted EPS(3) was reaffirmed at $2.82 to $2.92, absorbing a $0.04 unfavorable impact from changes in foreign exchange rates since mid-January 2020.

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