Join        Login             Stock Quote

Pfizer (PFE) 3Q Earnings Drop As Lipitor Weighs On Revenue, Narrows Forecast

 November 01, 2012 07:25 AM

(By Balachander) Pfizer Inc. (NYSE: PFE) posted a fall in quarterly earnings as loss of exclusivity of cholesterol drug Lipitor in the U.S. continued to hurt results and the pharma giant narrowed its forecast for the full year.

Adjusted earnings per share (EPS) declined 12 percent to 53 cents from 60 cents, matching market expectations.

Reported earnings dropped 14 percent to $3.21 billion. Results primarily included a $491 million charge resulting from an agreement with the U.S. Department of Justice to resolve a probe into Wyeth's historical promotional practices in connection with Rapamune.

Revenue was $13.98 billion, down 16 percent from $16.61 billion, while analysts expected $14.64 billion. U.S. revenue fell 18 percent, while International revenue declined 14 percent due to the unfavorable impact of foreign exchange.

[Related -Pfizer Inc. (PFE) Q3 Earnings Preview: What To Watch?]

"Overall, our results this quarter reflect continued product losses of exclusivity, most notably Lipitor in all major markets," commented CEO Ian Read.

The New York-based pharmaceutical giant's U.S. branded Lipitor revenue tumbled 71 percent for the third quarter. Lipitor lost exclusivity in the U.S. in November 2011 and other markets in 2011 and 2012. This loss of exclusivity reduced branded worldwide revenue by $1.9 billion in the third quarter.

Cost of sales fell 22 percent. Selling, informational and administrative expenses and research and development expenses dropped 14 percent and 9 percent, respectively.

[Related -Six Stocks That Could Get An October Bump From The FDA]

Looking ahead for the full year, the company now forecasts adjusted EPS in the range of $2.14 to $2.17 on revenue between $58.0 billion and $59.0 billion. Analysts expect EPS of $2.21 on revenue of $59.47 billion. Earlier, Pfizer guided adjusted EPS of $2.12 to $2.22 on revenue of $58.0 billion and $60.0 billion.

In addition, the company has authorized a new $10 billion share buyback plan, upon the sale of the Nutrition(1) business to Nestle, which is now expected to be completed in the next few months.

The stock, which has been trading in the 52-week range between $18.15 and $26.09, ended Wednesday's regular trading at $24.87.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageWill The Sluggish US Housing Market Perk Up This Year?

Housing remains a weak spot for the US economy, as suggested by yesterday’s news of a bigger-than-expected read on...

article imageThe Only Homebuilders To Own Right Now

Now is the time to invest in the housing market, but you must be read on...

article imageUS Economic Growth Slows in Q4

US GDP growth fell short of expectations in last year’s fourth quarter, the government reports. National read on...

article imageReversals After a Gap on the Open Could Mean Anything

Yesterday stock indexes gapped up on the open but then reversed course to close sharply lower. This type of read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.