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Pfizer (PFE) 2Q Earnings Rise As Costs, Expenses Drop; Lipitor Weighs On Revenue

 July 31, 2012 07:20 AM
 

(By Balachander) Pfizer Inc. (NYSE:PFE) reported better-than-expected quarterly earnings as drop in costs and expenses offset decline in revenue due to loss of exclusivity of cholesterol drug Lipitor in the U.S. The company maintained its forecast for the full year.
 
Adjusted earnings per share (EPS) increased 5 percent to 62 cents from 59 cents, and topped market expectations of 54 cents. Reported EPS were 43 cents, up 30 percent from the comparable period last year.
 
Revenue was $15.06 billion, down 9 percent from $16.5 billion, while analysts expected $14.9 billion. U.S. revenue fell 15 percent, while International revenue declined 5 percent due to the unfavorable impact of foreign exchange.
 
The New York-based pharmaceutical giant's U.S. branded Lipitor revenue tumbled 79 percent for the second quarter.

Cost of sales fell 23 percent. Selling, informational and administrative expenses and research and development expenses dropped 17 percent and 24 percent, respectively.

Looking ahead for the full year, the company continues to forecast EPS in the range of $2.14 to $2.24 on revenue between $58.0 billion and $60.0 billion. Analysts expect EPS of $2.21 on revenue of $59.97 billion.
 
The stock, which has been trading in the 52-week range between $16.63 and $23.94, ended Monday's regular trading at $23.71.


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